Silver Price Analysis: XAG/USD bulls need daily close beyond $21.00 to keep the reins

NEW YORK (March 3) Silver price (XAG/USD) prints mild gains around $21.00 as it braces for the first weekly gain in seven during early Friday in Europe.

In doing so, the bright metal seesaws around the 200-DMA while keeping the previous day’s break out of the one-month-old descending resistance line, now support around $20.60. Adding strength to the $20.60 support is the 61.8% Fibonacci retracement level of the metal’s run-up from October 2022 to February 2023.

The impending bull cross on the MACD indicator and the RSI (14) rebound from the oversold territory also appears to favor the Silver buyers, in addition to the sustained break of the previous key resistance and the successful rebound from the 61.8% Fibonacci retracement level, also known as golden Fibonacci retracement ratio.

As a result, the XAG/USD buyers are all set to extend the latest recovery moves toward the 50% Fibonacci retracement level of $21.36, given the daily closing beyond the 200-DMA level of $21.00.

However, the convergence of a 38.2% Fibonacci retracement and the 100-DMA, around $22.15, appears a tough nut to crack for the bulls afterward.

Meanwhile, pullback moves need to provide a daily closing below $20.60 support confluence, mentioned the previous day, to recall the Silver sellers.

Following that, the $20.00 psychological magnet and October 2022 low near $18.10 could gain the XAG/USD bear’s attention.

FXStreet