XAG/USD bulls eye monthly hurdle above $22.00 at 21-DMA break

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  • Silver remains in center stage around a 12-day high, rising for the third day in a row.
  • A sharp break of the 21-DMA, bullish MACD signals point buyers towards the 1-month resistance line.
  • The bears need a break down from $21.00 to regain control.

Silver (XAG/USD) pierces the 21-DMA while extending the previous day’s rise to a fortnightly high in Wednesday’s Asian session. That said, the shiny metal rises to $22.15 at the latest.

Not only is a breakout of the key short-term moving average, but bullish MACD signals are also underlying the bullish bias in commodity prices.

That said, a descending trendline from April 29 around $22.40 appears as an immediate key resistance for the quote to cross.

Thereafter, a rally towards the $23.00 threshold and a late April high near $23.60 cannot be ruled out.

However, an area comprising the 50-DMA and 100-DMA around $23.70-80, looks like a tough nut to crack for XAG/USD bulls going forward.

On the contrary, pullback moves may need to challenge the breakout of the DMA, around $22.00 at press time, to lead silver prices towards a two-week horizontal zone near 21.20- $10.

In a case where the metal remains weak above $21.10, conquers the $21.00 threshold as well, it may fall down to the psychological magnet of $20.00.

Silver: daily chart

Trend: continuation of the expected rise


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