Silver Price Analysis: 200-SMA, monthly support line defends XAG/USD bulls above $23.00
- Silver price picks up bids to snap three-day uptrend.
- RSI, MACD conditions also favor the rebound from the key support line, 200-SMA, suggesting further advances.
- Three-week-old horizontal support zone appears crucial for bulls.
Silver price (XAG/USD) licks its wounds around $23.40 amid early Thursday in Asia, printing the first daily gains in four as of late.
In doing so, the bright metal bounces off a one-month-long ascending trend line, as well as the 200-SMA.
The commodity’s recovery moves also take clues from the above 40.0 RSI (14), as well as recently improving MACD signals.
As a result, the XAG/USD is likely to extend the latest recovery moves toward the $22.00 round figure.
However, a horizontal area comprising multiple levels marked since December 21, near $24.30, could challenge the quote’s further upside.
It should be observed that the monthly high near $24.55 could act as the last defense of the XAG/USD bears past $24.30, a break of which won’t hesitate to direct Silver price towards the April 2022 high near $26.25.
On the contrary, the aforementioned support line and the 200-SMA restrict the immediate downside of the Silver price near $23.30 and $23.20 in that order.
Following that, the monthly low of $23.10 and the mid-December trough surrounding $22.55 will be in focus.
Overall, the Silver price is likely to remain firmer but the road toward the north is long and bumpy.
Silver price: Four-hour chart
Trend: Further upside expected