Silver Price Analysis: XAG/USD bulls brace for 50/100-DMA convergence
- Silver extends rebound from 21-DMA, refreshes intraday top.
- Upbeat MACD signals, firmer RSI line adds strength to the bullish bias.
- Bears remain cautious until witnessing a break of $21.42.
Silver (XAG/USD) remains on the front foot around $23.15, up 0.25% intraday during the mid-Asian session on Friday.
The bright metal recovered from the 21-DMA the previous day, backed by the bullish MACD signals.
However, a confluence of the 50-DMA and 100-DMA near $23.35-40 appears a tough nut to crack for the XAG/USD buyers.
Should silver prices rally beyond $23.40, 38.2% Fibonacci retracement of the May-September downside, near $24.20, will be in focus.
On the contrary, a downside break of the 21-DMA level surrounding $22.55 will direct the quote towards the $22.00 threshold.
Though, any further weakness below $22.00 will be challenged by the double bottoms marked in September and December around $21.42.
If at all the metal drops below $21.42, it becomes vulnerable to aim for the $20.00 psychological magnet.
Silver: Daily chart
Trend: Further recovery expected