XAG / USD bulls look for $ 24.00 breakout for new entries
- Silver is on the rise after crossing the short term resistance line, now support.
- The bullish MACD, trendline breakout favors buyers, but the 100, 200-SMA confluence offers a significant hurdle north.
- A three week old horizontal area is added to the downward filters.
Silver (XAG / USD) remains trending towards the $ 24.00 level, around $ 23.85 during Thursday’s initial Asian session.
The shiny metal recently broke an eight-day bearish trendline, supported by a bullish MACD and a sustained rebound from August 20 to September 3.
However, a convergence of 100 and 200-SMA appears to challenge bulls around $ 24.00.
Therefore, XAG / USD buyers need a clear bullish breakout of $ 24.00 despite the trendline breakout and the bullish MACD.
Subsequently, the 23.6% Fibonacci retracement (Fibo) near $ 24.40 and the monthly high of $ 24.86 should return to the charts before leading the silver bulls towards the August highs near. from $ 26.00.
Meanwhile, failures to cross the $ 24.00 hurdle will cause traders to wait for a downward breakout of resistance turned support around $ 23.75.
If the silver sellers hold the reins beyond $ 23.75, the indicated 61.8% Fibo and a horizontal zone from August 27, close to $ 23.60 and $ 23.35 respectively, will be important to watch out for.
Overall, the 100-SMA cross, bullish MACD and trendline breakout favor XAG / USD buyers.
Silver: four hour graph
Trend: further increase expected