Silver Price Analysis: XAG/USD clears immediate upside hurdle above $24.00
- Silver eases from one week high, keep upside break of 50-bar SMA.
- September 22 top lures the bulls, sellers may wait for a break of four-day-old support line before entry.
- Bullish MACD, sustained clearance of near-term resistance favor buyers.
Silver prices print a three-day winning streak while picking up the bids near $24.20, up 0.10% intraday, during the initial hour of Tokyo open on Wednesday. The white metal crossed 50-bar SMA the previous day but stepped back from $24.40 afterward.
Even so, the bullion keeps the SMA breakout amid bullish MACD, which in turn suggests further upside towards 50% Fibonacci retracement of September 01-24 downside, at $25.28.
However, $24.40 and the $25.00 threshold can offer intermediate upside barriers during the rise.
It should also be noted that silver prices will find it difficult to extend the upside beyond $25.28 as a 61.8% Fibonacci retracement level of $26.13, followed by a confluence of 200-bar SMA and a monthly resistance line near $26.35, challenge the bulls.
Meanwhile, a downside break of 50-bar SMA, at $24.08 now, may retest the 23.6% Fibonacci retracement level of $23.36 before resting on an ascending trend line from September 24, currently around $23.20.
In a case where silver bears dominate past-$23.20, $23.00 may offer an intermediate halt during the fall to the monthly low near $21.65.
Silver four-hour chart
Trend: Bullish