Silver Price Analysis: XAG/USD pierces 12-day-old resistance to aim for $23.00
- Silver extends Friday’s rebound, battles 50-SMA while easing from intraday high.
- Bullish MACD conditions, trend line breakout keep buyers hopeful.
- 200-SMA adds to the upside filters, monthly support line challenges bears.
Silver (XAG/USD) stays on the front foot around $22.70, up 0.80% intraday during Monday’s Asian session.
In doing so, the bright metal crosses a downward sloping trend line from January 20 but battles the 50-SMA level to extend Friday’s recovery from a five-week low.
Given the bullish MACD, silver prices are likely to overcome the immediate hurdle surrounding $22.70. However, a clear upside break of the 200-SMA level close to $23.00 will be needed for the XAG/USD bulls to keep reins.
Following that, a horizontal area comprising multiple levels marked since January 18, near $23.60-65, will be crucial to watch.
Alternatively, pullback moves remain elusive beyond the resistance-turned-support line near $22.50.
Even if the silver sellers break the previous resistance line, an upward sloping trend line from early January, near $22.30 and the $22.00 threshold will challenge the metal’s further weakness.
Silver: Four-hour chart
Trend: Further upside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
