Silver Price Analysis: XAG/USD seesaws below $23.30 resistance confluence
- Silver grinds higher around weekly high after positing the biggest daily gains in a month.
- 100-DMA, descending trend line from November 26 restricts immediate upside.
- Bullish MACD signals, clear break of two-month-old resistance keep buyers hopeful.
Silver (XAG/USD) traders jostle around the multi-day top while defending $23.00 heading into Thursday’s European session. The bright metal picks up bids to $23.20 by the press time.
That said, silver prices jumped the most since mid-December the previous day after crossing a downward sloping trend line from November 16.
Although bullish MACD signals join the previous resistance break to favor buyers, a convergence of the 100-DMA and a seven-week-old descending trend line challenges the XAG/USD bulls around $23.30.
It’s worth noting that the last monthly peak near $23.45 acts as an extra hurdle to the north before directing the buyers towards the $23.00 threshold.
Meanwhile, pullback moves may aim for the resistance-turned-support line near $22.95.
However, any further weakness will recall the silver sellers targeting the early December peaks near $22.60 and the monthly low near $21.95.
To sum up, silver prices are likely to stay firmer but need validation from $23.30.
Silver: Daily 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.
