XAG / USD buyers have a bumpy road under the $ 23.15 barrier
- Silver fails to extend the short-term break in resistance, step back from 50-SMA.
- The positive momentum line suggests further recovery, but the three week old falling trendline, double tops, are challenging the bulls.
Silver fell to $ 22.60 during Tuesday’s Asian session after the first positive daily close.
The bright metal broke a descending resistance line from September 16 the previous day, but failed to break the 50-SMA before the final pullback. However, the momentum line is helping the metal recover from last week’s annual low.
As such, buyers will wait for a clear upside break in the 50 SMA at around $ 22.65 to post new entries aiming to hit the $ 23.00 threshold.
Even so, a three week old downward sloping trendline and double tops of $ 23.05 and $ 23.15 respectively since September 17th will be the main challenges for XAG / USD traders to overcome before regaining control .
On the contrary, $ 22.30 could provide immediate support to silver prices before dragging the bears to the $ 22.00 annual low.
After that, it will be important to watch the November and September 2020 marked lows near $ 21.90 and $ 21.65, respectively, in that order as they hold the gate for the south run of the metal towards below $ 20.00 .
Silver: four-hour chart
Trend: withdrawal expected