XAG / USD offers target resistance at USD 22.40 which became support
- Silver accepts offers to refresh the intraday lows and grabs the three-day uptrend.
- 10-DMA, a month old declining trendline, limits the immediate downward movement.
- The sluggish momentum line is challenging bearish moves towards the yearly lows.
- Bulls require validation from $ 22.90 for new entries.
Silver prices (XAG / USD) are printing the new daily low around $ 22.50, down 0.80% for the day, while marking the first of four daily declines early Tuesday.
Although failure to break a six week old horizontal hurdle that makes XAG / USD sellers hopeful, a convergence of the 10-DMA and previous resistance level near $ 22.40 in early September calls into question the immediate declines.
Even if the bears manage to break strong support at $ 22.40, the $ 22.00 line will continue to filter the downside before pulling the metal towards the $ 21.42 low for the year.
It should be noted that the weaker momentum line represents traders indecision and challenges the recent pullback.
However, the recovery moves must cross the stated horizontal resistance near $ 22.90 to steer silver buyers toward the $ 23.30 hurdle, which includes late August and early September lows.
Most notably, silver’s bearish price, as indicated by the descending resistance line on July 6 at around $ 23.90 (at press time), remains intact.
Silver: daily chart
Trend: withdrawal expected