XAG/USD remains firmer above 200-DMA as Bulls Eye hits $22.25

  • Silver prices remain slightly bid off the weekly high, showing a 3-day uptrend.
  • A clear break of 200-DMA and a positive RSI (14) will favor buyers closer to the monthly high.
  • Highs marked in October and August complement the down filters.

Silver (XAG/USD) price picks up bids to refresh weekly top around $21.60 during Thursday’s Asian session.

This pushes the bright metal up for the third straight day while justifying the previous day’s upbreak of the 200-DMA. Also, the firmer RSI line (14), which is not overbought, is keeping the XAG/USD bulls hopeful.

This brings the price closer to the monthly high around the 50% Fibonacci retracement of the March-September downside near $22.25.

However, the June top around $22.50 could challenge silver buyers thereafter, if not then a surge towards the 61.8% Fibonacci retracement level near $23.40, also known as the golden ratio, could lure the bulls .

On the downside, a daily close below the 200-DMA, near $21.40 at press time, seems necessary to confirm any short-term downside.

Despite this, the highs marked in October and August near $21.25 and $20.85 respectively, quickly followed by the 21-DMA support near $20.75 could limit XAG/USD’s near-term downside.

It is worth noting that the May low near $20.45 is acting as silver buyers’ last line of defense.

Silver: daily chart

Trend: Further uptrend expected

Comments are closed.