Major SMAs defend XAG / USD bulls below $ 23.00
- Silver consolidates the early losses of the Asian session, most recently pausing the three-day uptrend.
- The looming Bear Cross examines buyers targeting a resistance confluence of $ 23.00.
- Weekly support line joins 200-SMA to limit immediate downside moves.
Silver (XAG / USD) takes bids to reverse early Asian losses around $ 22.75, down 0.12% on Wednesday morning for the day. The bare metal prints the first day’s loss in four days.
Even so, sustained trading beyond the 50, 100 and 200 SMAs joins the bullish MACD signals to keep buyers hopeful.
However, a convergence of the seven-day old descending trendline hits the 23.6% Fibonacci retracement on the 15th-28th. December up, near $ 23.00 to challenge the metal’s short-term bullish move.
After that, a run-up to the December high of USD 23.45 cannot be ruled out. However, the November 29th top at USD 23.50 provides an additional upside filter to challenge the XAG / USD bulls.
It’s worth noting that the 50-SMA annoys a bear’s cross with the 100-SMA and can pull prices upon confirmation.
In this case, a week old support line and 200-SMA, around $ 22.60, will be major support to watch.
Should silver sellers hit the USD 22.60 support, a downtrend in the commodity to the 61.8% Fibonacci retracement level of USD 22.20 and then to the monthly low of USD 21.952 cannot be ruled out.
Silver: four-hour chart
Trend: further upward trend expected