Silver Price Analysis: XAG/USD struggles to defend 50-SMA breakout within nearby triangle
- Silver price remains sidelined with fortnight-old symmetrical triangle.
- Bullish MACD signals, 50-SMA breakout keeps XAG/USD buyers hopeful.
- Pullback remains elusive beyond $22.30; Silver buyers need validation from 100-SMA to retake control.
Silver Price (XAG/USD) fades the previous day’s upside momentum as it treads water around $22.75 amid the early hours of Monday’s Asian session. In doing so, the XAG/USD fails to extend Friday’s upside break of the 50-SMA while retreating within a two-week-old symmetrical triangle.
Although the top line of the stated triangle challenges the Silver Price upside, the quote’s 50-SMA breakout joins the bullish MACD signals to keep buyers hopeful unless the prices break the immediate SMA support of around $22.65.
Even if the quote breaks the stated SMA support, the bottom line of the immediate triangle, close to $22.35 at the latest, will challenge the Silver Price sellers before giving them control.
Following that, lows marked during the last March and the last week, around $22.15-10, will precede the $22.00 round figure to challenge the XAG/USD bears before directing them to the early March swing high of around $21.30.
On the flip side, a clear break of the stated triangle’s top line, close to $22.85, will quickly propel the Silver Price towards the 12-day-old horizontal resistance around $23.25. Also acting as the short-term upside hurdle is the 100-SMA level of near $23.30.
In a case where the Silver Price remains firmer past $23.30, the odds of witnessing a run-up toward the monthly high of $24.52 can’t be ruled out.
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.
