Silver Price Analysis: XAG/USD bounces off five-month-old support towards $23.30 resistance
- Silver Price picks up bids to defend Thursday’s recovery from the key support line.
- Convergence of 200-DMA, resistance-turned-support from early March join bearish MACD signal to prod XAG/USD bulls.
- Silver bears need validation from $22.00 to tighten the grip.
Silver Price (XAG/USD) refreshes intraday high near $22.75 during early Friday as it stretches the previous day’s corrective bounce off an ascending support line from March 14.
It’s worth noting, however, that the bearish MACD signals join a convergence of the 200-DMA and a five-month-old previous support line to challenge the Silver buyers near $23.25-30.
Following that, the late July swing low of around $24.00 and June’s peak of around $24.55 will lure the Silver buyers.
Though, the previous monthly top of around $25.30 and a four-month-long horizontal resistance area near $26.10-15 appear major challenges for the XAG/USD bulls afterward.
Meanwhile, a daily closing below the previously mentioned rising support line, close to $22.60 by the press time, could quickly fetch the Silver Price towards a region comprising multiple levels marked since mid-March, close to $22.10. Also acting as a downside filter is the $22.00 round figure.
In a case where the XAG/USD remains bearish below $22.00, the odds of witnessing the commodity’s slump toward early March’s swing high of near $21.30 can’t be ruled out.
Overall, the Silver Price slips off the bear’s radar but remains less lucrative for buyers below $23.30.
Silver Price: Daily chart
Trend: Limited upside expected