XAG/USD is breaking away from key short-term resistance near $22.00

  • Silver is fading upside momentum near one-week high but remains on course for first weekly gain since early April.
  • Three week old descending trendline, 100-SMA limits near rises within weekly rising channel.
  • MACD and RSI conditions are pointing for a gradual recovery until the price stays above $21.40.

Silver (XAG/USD) parries previous day’s gains during Friday’s weak Asian session around $21.90.

As it does so, the bright metal is pulling away from a late April downward sloping trendline while remaining within a week-old ascending trend channel.

However, the firmer RSI (14) and bullish MACD join the rising channel formation to give XAG/USD buyers hopeful of clearing the immediate $22.00 hurdle.

However, the 100 SMA level near $22.10 is acting as an additional filter north before steering the price towards the upper line of the indicated channel, which is close to $22.50 at press time.

Meanwhile, pullback moves remain elusive until they stay above the channel’s support line, no later than around $21.40.

After that, a downtrend towards the monthly low of $20.45 and then to the $20.00 threshold cannot be ruled out.

Silver: four hour chart

Trend: Further upside potential expected

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