During Wednesday’s Asian session, silver (XAG/USD) reaches a new intraday high at $21.20 as it extends its rebound off a crucial short-term Fibonacci support. The recovery of the precious metal from its monthly low faces various obstacles.
However, the one-month-old horizontal region near $21.30 looks to be the immediate obstacle for purchasers of XAG/USD.
After that, a weekly resistance line and a confluence of the 100-SMA and 200-SMA at $21.80 and $21.90, respectively, might challenge the bulls before guiding them to the monthly high near $22.50.
Metal buyers are teased by the RSI’s comeback from oversold territory and the MACD‘s upcoming bull cross.
Nonetheless, a decisive breach of the 78.6 percent Fibonacci retracement of May 13 to June 6 to the upside, at $20.90, would not hesitate to push silver sellers to the previous monthly low of $20.45.
During price decline beyond $20.45, the $20.00 round number may halt XAG/USD bears.