Silver Price Analysis: XAG/USD recovery remains elusive below $19.65 hurdle
- Silver price picks up bids to reverse the week-start pullback from 100-DMA.
- Impending bull cross on MACD, sustained bounce off 50-DMA lure buyers.
- Monday’s candlestick challenge upside moves unless offering a positive close beyond $19.65.
Silver price (XAG/USD) regains upside momentum after a downbeat start as it again approaches the 100-HMA hurdle while picking up bids to $19.30 during Tuesday’s Asian session.
In doing so, the bright metal challenges the previous day’s bearish candlestick formation that needs validation from Tuesday’s close. That said, the looming bull cross on the MACD, as well as the successful U-turn from the 50-DMA, keeps the XAG/USD buyers hopeful.
Should the quote’s crosses the 100-DMA hurdle near $19.65, the bearish hopes raised from the previous day’s candles wanes, which in turn propels the quote towards the $20.00 threshold.
However, multiple hurdles surrounding the 50% Fibonacci retracement of the commodity’s June-September moves, near $20.05, could challenge the XAG/USD bulls afterward, a break of which could quickly propel prices towards the 61.8% Fibonacci retracement level near $20.65.
Even so, the tops marked during August and October, respectively near $20.90 and $21.25, could challenge silver’s further upside.
Alternatively, pullback remains elusive beyond the 50-DMA support of $19.10.
Also acting as the key downside level is $18.35, comprising an upward sloping support line from the late August, a break of which won’t hesitate to refresh the yearly low.
Silver: Daily chart
Trend: Limited upside expected