- Silver price picks up bids to refresh weekly high after crossing short-term moving average.
- RSI rebound, easing bearish bias of MACD adds strength to the XAG/USD recovery.
- Convergence of 50-DMA, 38.2% Fibonacci retracement appears strong resistance.
- Six-week-old ascending support line restricts immediate downside.
Silver prices (XAG/USD) remain firmer at the weekly top as a clear upside break of the 5-DMA joins upbeat oscillators to favor bulls during Thursday morning in Europe.
Given the easing bearish bias of the MACD and the RSI recovery near the oversold territory, the bright metal’s latest breakout of the 5-DMA is likely to favor the bulls.
That said, the early August swing low, near $19.55, appears immediate resistance for the silver buyers to cross to justify the bullish momentum strength. However, a convergence of the 50-DMA and 38.2% Fibonacci retracement of the June-July downside, around $19.85, could challenge the XAG/USD bulls afterward.
Should the silver price remains firmer past $19.85, the odds of witnessing an upswing towards the monthly peak of $20.87 can’t be ruled out.
Alternatively, the 5-DMA and an upward sloping support line from mid-July, around $19.10 and $18.75 could challenge the short-term XAG/USD bears.
Following that, the yearly low marked in July at around $18.10 might lure the silver sellers.
Silver: Daily chart
Trend: Limited upside expected