XAG/USD bulls seem hopeful of clearing the 200 SMA hurdle
- Silver is reversing the previous day’s pullback from the monthly high and has been dragging higher of late.
- Bullish RSI divergence and sustained trading above the 3 week old support is in bulls favor.
- Bears need confirmation from $21.20 to regain control.
Silver prices (XAG/USD) remain firmer around $22.30 while reversing the previous day’s pullback from a monthly high towards Monday’s European session.
With that, the bright metal is once again approaching the 200 SMA hurdle that triggered the price’s reversal on Friday.
It is worth noting that the higher low in price follows the RSI’s recovery to indicate bullish divergence in price, suggesting the price is poised to scale the immediate key SMA hurdle around $22.35 overcome.
However, the previous day’s high around $22.50 appears to be a validation point for the commodity’s continued bullishness. After that, a rally to the May high of $23.30 cannot be ruled out.
Alternatively, a pullback remains elusive until XAG/USD prices hold above the three-week-old support line, which stands at around $21.70 at press time.
Even if bullion prices fall below $21.70, the 23.6% Fibonacci retracement from late April to early May near $21.20 could serve as silver buyers’ last line of defense.
Silver: four hour chart
Trend: Further upside potential expected