Silver Price Analysis: XAG/USD renews two-week high above $23.00 on crossing monthly resistance line
- Silver Price grinds near the highest level in a fortnight after rising the most since mid-July.
- Clear upside break of one-month-old descending resistance line, 100-DMA favors XAG/USD bulls.
- 200-SMA, previous support line from June will prod Silver buyers.
Silver Price (XAG/USD) remains firmer at the highest level in two weeks despite making rounds of $23.30 during the early hours of Tuesday’s Asian session.
The bright metal’s upside break of a one-month-old descending trend line joins the 100-SMA breakout and the bullish MACD signals to lure the buyers.
With this, the commodity appears well set to prod the 200-SMA level of around $23.75. However, the support-turned-resistance line stretched from late June, close to $23.90 by the press time, will test the XAG/USD buyers afterward.
Following that, the $24.00 round may act as an extra check for the Silver bulls before directing them to the late July swing high of near $24.85.
On the flip side, the 100-SMA level of around $23.15 precedes the $23.00 round figure to restrict the XAG/USD’s short-term downside.
Also challenging the Silver bears is the previous resistance line stretched from late July, close to $22.75 at the latest.
In a case where the XAG/USD remains bearish past $22.75, the odds of witnessing a slump toward June’s low of $22.11 and the $22.00 threshold can’t be ruled out.
Overall, the Silver buyers are back in the driver’s seat after the previous day’s heavy run-up.
Silver Price: 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.
