XAG/USD advances towards $24.00

  • Silver pulls back after a refreshing 13-day high, continues to bounce off 100-DMA.
  • Bullish MACD signals also support the rise towards 200-DMA.
  • The seven-month-old resistance line acts as the main hurdle.

Silver (XAG/USD) is paring intraday gains of around $23.65, up 0.10% on the day in Monday’s mid-Asian session.

The shiny metal refreshed to multi-day lows at the start of the Asian session before falling from $23.78.

The pullback moves, however, remain above the 100-DMA amid bullish MACD signals, which in turn keeps buyers hopeful until the quote falls below the indicated SMA support, approximately $23.20 at press time.

The 23.6% Fibonacci (Fibo.) retracement of the July-September declines and a five-week horizontal support zone around $22.70 and $22.00, respectively, also act as downside filters.

Alternatively, the bullish XAG/USD is eyeing the $24.00 threshold as immediate resistance before facing the 50% Fibo. nearly $24.10.

It should be noted, however, that the rise in quotation above $24.10 will be challenged by the 200-DMA and a descending trendline from July near $24.35 and $24.45 in this order.

Overall, silver prices are expected to rise further, but the upside is seen as limited.

Silver: daily chart

Trend: continuation of the expected increase

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