Silver Price Analysis: XAG/USD buyers need validation from $22.50
- Silver price remains firmer at the highest levels in six months.
- Clear break of descending trend line from March, sustained bounce off 200-day EMA favor bulls.
- June’s peak could challenge further upside as RSI approaches overbought territory.
Silver price (XAG/USD) renews a six-month high of around $22.40 early Thursday, after crossing the key resistance line stretched from March.
The bright metal registered the biggest daily jump in three weeks the previous day while portraying a sustained bounce from the 200-day Exponential Moving Average (EMA).
However, the nearly overbought Relative Strength Index (RSI) line, placed at 14, challenges the XAG/USD bulls as they approach June’s peak surrounding $22.50.
Hence, a daily closing beyond the same becomes necessary for the Silver buyers to keep control.
In that case, May’s peak near $23.30 and March’s low around $24.00 could lure the XAG/USD bulls.
On the flip side, pullback moves remain elusive unless staying beyond the aforementioned eight-month-old resistance-turned-support line, currently around $22.15.
Following that, October’s high near $21.25 and the 200-day EMA level surrounding $21.00 could challenge Silver sellers.
Also acting as the downside filter is August month’s high near $20.85 and May’s low near $20.45.
Overall, the Silver price remains on the buyer’s radar but the metal’s further upside hinges on a $22.50 breakout.
Silver: Daily chart
Trend: Limited upside expected