Silver Price Analysis: XAG/USD bulls occupy driver’s seat above $23.00
- Silver price remains firmer inside the four-day-old bullish channel.
- 200-HMA, weekly horizontal support zone challenge bears from retaking control.
- RSI conditions suggest further pullback but channel formation tests sellers.
Silver price (XAG/USD) pares intraday gains around the weekly top, also the highest level in seven months, as bulls take a breather during early Friday morning in Europe. Even so, the bullion price prints the third consecutive intraday gains by the press time.
In doing so, the bright metal retreats from the daily high as the RSI (14) takes a U-turn from the overbought territory, as well as breaks the short-term support line.
However, an ascending trend channel formation, established on Tuesday, restricts short-term XAG/USD moves between $23.45 and $23.00.
Even if the bright metal breaks the $23.00 support, the 200-HMA level surrounding $22.30 could challenge the bears.
It’s worth noting that the one-week-long horizontal area surrounding the $22.00 round figure appears the last defense of the silver buyers.
On the contrary, an upside break of the $23.45 hurdle needs validation from the multi-day high marked on Monday around $23.51 to convince Silver buyers of further advances.
Following that, March’s low near $24.00 and January’s high of $24.70 will gain the market’s attention.
To sum up, the Silver price remains on the buyer’s radar unless the quote drops below $22.00. However, the upside room appears limited below $23.51.
Silver: Hourly chart
Trend: Bullish