XAG/USD rebound needs validation from $20.30
- Silver extends the recovery earlier in the week towards the key near-term hurdle.
- 100-HMA, weekly resistance challenges buyers amid bullish MACD signals.
- The nearby support line limits the immediate downside ahead of the multi-month low.
Silver prices (XAG/USD) remain ahead around $20.10 early Tuesday morning in Europe. This is pushing the bright metal higher towards the key resistance confluence of $20.30 hit recently.
Bullish MACD signals and the metal’s ability to stay above the immediate support line near $20.00 are giving XAG/USD buyers hopes of clearing the main hurdle comprising the 100-HMA and the week-old descending trend line.
After that, a move higher towards 200-HMA and 61.8% Fibonacci retracement from 27th June to 01st July down near $20.80 seems imminent.
If silver buyers hold the reins above $20.80, the rally could easily break above $21.00 to steer the bullish move towards the late June swing high near $22.00.
On the contrary, the support line mentioned above, which now stands at $20.00, could challenge the silver sellers to take back control.
In a case where XAG/USD breaks above $20.00, the recently refreshed two-year low of around $19.40 will be in focus before a 2020 high around $19.00.
To sum up, silver prices are likely to continue the recent recovery but have yet to be confirmed from $20.30.
Silver: hourly chart
Trend: Limited upside expected