XAG / USD remains defensive near $ 24.00 as bulls approach key hurdles
- Silver is slightly higher around the monthly high, sustaining recovery moves from August 08.
- 200-SMA, five-week horizontal zone testing short-term buyers ahead of the July descending resistance line.
- Momentum line pullback is probing bulls near crucial resistance levels.
- The bears have to wait for a clean break from the month-old support line.
Silver buyers (XAG / USD) pause around the monthly peak above $ 24.00, near $ 24.14 during Thursday’s Asian session.
In doing so, the shiny metal maintains rally moves from the year’s low flashed in early August even as a pullback in the Momentum line challenges buyers.
It should be noted that 200-SMA and a horizontal zone comprising several levels marked since July 27, around $ 24.35 and $ 24.40-50 respectively, add to the difficulties of the Silver Bull.
Even if commodity prices recover above $ 24.50, a descending resistance line from late July 06, near $ 24.80, will be difficult to break before confirming the bullish momentum.
Meanwhile, the recent low of $ 23.75 and the monthly support line close to $ 23.60 call into question the price pullbacks.
However, a clear bearish breakout of $ 23.60 will not hesitate to point silver declines towards the annual low around $ 22.15 while pausing around the $ 22.85 level including the low. August 20.
Silver: four hour graph
Trend: expected withdrawal