XAG/USD is breaking away from key short-term resistance near $22.00
- Silver is fading upside momentum near one-week high but remains on course for first weekly gain since early April.
- Three week old descending trendline, 100-SMA limits near rises within weekly rising channel.
- MACD and RSI conditions are pointing for a gradual recovery until the price stays above $21.40.
Silver (XAG/USD) parries previous day’s gains during Friday’s weak Asian session around $21.90.
As it does so, the bright metal is pulling away from a late April downward sloping trendline while remaining within a week-old ascending trend channel.
However, the firmer RSI (14) and bullish MACD join the rising channel formation to give XAG/USD buyers hopeful of clearing the immediate $22.00 hurdle.
However, the 100 SMA level near $22.10 is acting as an additional filter north before steering the price towards the upper line of the indicated channel, which is close to $22.50 at press time.
Meanwhile, pullback moves remain elusive until they stay above the channel’s support line, no later than around $21.40.
After that, a downtrend towards the monthly low of $20.45 and then to the $20.00 threshold cannot be ruled out.
Silver: four hour chart
Trend: Further upside potential expected