- 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