Silver Price Analysis: XAG/USD advances beyond $22.00 as bulls prepare for a choppy ride

Silver receives offers to reach a new daily high for the first time in three days. Before the weekly resistance line and the critical SMA confluence, the monthly horizontal resistance area pushes buyers. MACD and RSI indicate a continuation of the uptrend, while the 78.6 percent Fibonacci retracement level prevents additional losses.

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.

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