XAG/USD breaks through 12-day resistance to target $23.00

  • Silver extends Friday’s bounce, fights the 50-SMA while moving away from the intraday high.
  • Bullish MACD conditions and the breakout of the trendline keep buyers bullish.
  • 200-SMA adds to the filters on the upside, the monthly support line challenges.

Silver (XAG/USD) remains in the limelight around $22.70, up 0.80% intraday in Monday’s Asian session.

In doing so, the shiny metal crosses a descending trendline from January 20, but battles the 50-SMA level to extend Friday’s rally from a five-week low.

Given the bullish MACD, silver prices should overcome the immediate hurdle surrounding $22.70. However, a sharp upside break of the 200-SMA level near $23.00 will be needed for the XAG/USD bulls to hold the reins.

Next, a horizontal zone comprising several levels marked since January 18, near $23.60-65, will be crucial to watch.

Alternatively, pullback moves remain elusive beyond the resistance-turned-support line near $22.50.

Even if silver sellers break the previous resistance line, an ascending trendline from early January near $22.30 and the $22.00 threshold will challenge further weakness in the metal.

Silver: four-hour chart

Trend: continuation of the expected increase

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