Forex News

07:39:54 13-01-2022

Silver Price Analysis: XAG/USD seesaws below $23.30 resistance confluence

  • Silver grinds higher around weekly high after positing the biggest daily gains in a month.
  • 100-DMA, descending trend line from November 26 restricts immediate upside.
  • Bullish MACD signals, clear break of two-month-old resistance keep buyers hopeful.

Silver (XAG/USD) traders jostle around the multi-day top while defending $23.00 heading into Thursday’s European session. The bright metal picks up bids to $23.20 by the press time.

That said, silver prices jumped the most since mid-December the previous day after crossing a downward sloping trend line from November 16.

Although bullish MACD signals join the previous resistance break to favor buyers, a convergence of the 100-DMA and a seven-week-old descending trend line challenges the XAG/USD bulls around $23.30.

It’s worth noting that the last monthly peak near $23.45 acts as an extra hurdle to the north before directing the buyers towards the $23.00 threshold.

Meanwhile, pullback moves may aim for the resistance-turned-support line near $22.95.

However, any further weakness will recall the silver sellers targeting the early December peaks near $22.60 and the monthly low near $21.95.

To sum up, silver prices are likely to stay firmer but need validation from $23.30.

Silver: Daily chart

Trend: Further upside expected


News provided by the portal FXStreet