- Silver reverses the previous day’s pullback from the monthly high, creaks higher lately.
- The bullish RSI divergence and sustained trading past the three-week support favors the bulls.
- The bears need validation from $21.20 to regain control.
Silver (XAG/USD) prices remain firmer around $22.30 while reversing yesterday’s pullback from a monthly high ahead of Monday’s European session.
In doing so, the shiny metal is once again approaching the 200 SMA hurdle that triggered the price U-turn on Friday.
It should be noted that the higher low in price joins the recovery in the RSI to hint at the bullish divergence in price, suggesting the quote’s ability to clear the immediate key hurdle of the SMA around $22.35.
However, the previous day’s high around $22.50 appears to be a validation point for the commodity to continue higher. Thereafter, a rally towards the May high of $23.30 cannot be ruled out.
Alternatively, pullback remains elusive until XAG/USD prices stay above the three-week-old support line around $21.70 at press time.
Even if bullion prices fall below $21.70, the 23.6% Fibonacci retracement from late April to early May near $21.20 could be the last defense for silver buyers.
Silver: four-hour chart
Trend: continuation of the expected rise