Silver Price Analysis: Xag/usd Bulls Attack $21.75 Key Hurdle

Silver Price Analysis: Xag/usd Bulls Attack $21.75 Key Hurdle

  • Trade Ideas
  • Commodities
  • 2022, 17 June

Brief:

  • Silver struggles to extend Fed-inspired rally as bulls jostle with a short-term key resistance confluence.
  • 10-DMA, weekly descending trend line restricts immediate upside.
  • Sluggish MACD, RSI challenges further upside, bears need validation from monthly horizontal support.

Silver (XAG/USD) prices remain sidelined at around $21.70, following the biggest daily jump in over three months, as bulls struggle to cross the key hurdle during Thursday’s Asian session.

That said, bright metal rallied over 3.5% to post the biggest daily rise since early March after the US Federal Reserve’s (Fed) monetary policy decision. However, a convergence of 10-DMA and a downward sloping trend line from June 06 challenges the XAG/USD upside around $21.75.

Not only the $21.75 resistance confluence but sluggish MACD and steady RSI (14) also challenge the commodity’s immediate upside.

It’s worth noting that a quote’s run-up beyond the $21.75 hurdle enables the silver buyers to aim for a downward sloping resistance line from early May, around $22.25 by the press time, a break of which could direct the bulls to the 50-DMA resistance level of $22.71.

Alternatively, pullback moves need validation from a one-month-old horizontal support area surrounding $21.40-45.

Should the XAG/USD prices drop below $21.40, a fall towards the $21.00 threshold will be imminent before the monthly low and May’s bottom, respectively around $20.90 and $20.45 lures the metal sellers.

Suggestion:

Buy above 21.54 for 22.16 and 22.36

Else

Sell below 21.54 for 21.32 and 21.08

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