Silver Price Analysis: XAG/USD buyers aim for another battle with 200-SMA
- Silver picks up bids to print three-day uptrend, reverses previous day’s pullback from the key SMA.
- Previous support line from December 2021, three-week-old resistance add to the upside filters.
- Weekly ascending trend line limits immediate downside, Momentum indicator favors bulls.
Silver (XAG/USD) holds onto the weekly rebound near $22.65, despite the previous day’s pullback from 200-SMA, during Wednesday’s Asian session.
It’s worth noting that the weekly support line joins firmer Momentum to keep buyers hopeful of clearly overcoming an upward sloping support-turned-resistance line from December 15, around $22.75.
Following that, the 200-SMA level near $23.00 will precede a three-week-long resistance line, near $23.15, to challenge XAG/USD bulls.
Should silver prices rise past $23.15, a five-week-old horizontal resistance area near $23.45 will be important to convince the bulls.
Alternatively, pullback moves remain elusive until staying beyond an upward sloping trend line from Friday, near $22.50 at the latest.
In a case where the silver bears manage to conquer the nearby support line, the recent swing low around $22.15 and January’s trough surrounding $21.95, will be crucial before targeting the December 2021 low of $21.42.
Silver: Four-hour chart
Trend: Further recovery expected