XAG/USD rebounds from 7-week high, back above $22.00

• Silver prices recover, trading at approximately $22.32 an ounce, marking a 0.27% gain after touching five-week lows at $21.88.
• Technical analysis reveals a neutral to downward bias, but a ‘hammer’ pattern formation on the daily chart suggests potential bullish momentum.
• For a bullish shift, silver needs to surpass the 50-day moving average (DMA) at $22.65, targeting the 200-DMA at $23.25 and the October 20 high at $23.69.

Silver price finds its foot and rises after reaching five-week lows at $21.88 on Monday, and exchanges hands at around $22.32 a troy ounce, late during the North American session, printing gains of 0.27%, at the time of writing.

From a technical standpoint, the grey’s metal is neutral to downward biased, but the daily chart portrays price action is forming a ‘hammer,’ usually a bullish signal, after posting a series of seven successive days registering lower highs and lows, that ended on Monday.

Hence, if XAG/USD would turn bullish, buyers must initially reclaim the 50-day moving average (DMA) at $22.65. A breach of the latter would expose the 200-DMA at $23.25, followed by October 20, the latest cycle high at $23.69. Once cleared, a bullish resumption would be underway.

On the other hand, a drop below the October 13 low of $21.87, would cement a bearish case, with sellers next target being the October 4 swing low of $20.69, followed by the year-to-date (YTD) low of $19.90.

XAG/USD Price Analysis – Daily Chart

XAG/USD Technical Levels