- Silver consolidates early Asian session losses, pauses three-day uptrend of late.
- Looming bear cross probes buyers targeting $23.00 resistance confluence.
- Weekly support line joins 200-SMA to restrict immediate downside.
Silver (XAG/USD) picks up bids to reverse the early Asian losses around $22.75, down 0.12% intraday during Wednesday morning. In doing so, the bright metal prints the first daily loss in four days.
Even so, sustained trading beyond the 50, 100 and 200 SMAs join bullish MACD signals to keep buyers hopeful.
That said, a convergence of the seven-day-old descending trend line joins the 23.6% Fibonacci retracement of December 15-28 upside, near $23.00, to challenge the metal’s short-term upside.
Following that, a run-up to December’s peak of $23.45 can’t be ruled out. However, November 29 top surrounding $23.50 offers an additional upside filter to challenge the XAG/USD bulls.
It’s worth noting that the 50-SMA teases a bear cross with the 100-SMA and may drag the prices if confirmed.
In that case, a one-week-old support line and 200-SMA, around $22.60, will be an important support to watch.
Should silver sellers conquer the $22.60 support, the commodity’s downside to 61.8% Fibonacci retracement level of $22.20 and then to the monthly low of $21.952 can’t be ruled out.
Silver: Four-hour chart
Trend: Further upside expected