Silver Price Analysis: XAG/USD rebound approaches previous support line around $23.00

• Silver Price takes the bids to refresh intraday high, extends previous day’s recovery from 14-week low.
• Horizontal support from mid-March joins bullish MACD signals, RSI rebound from oversold territory to favor XAG/USD buyers.
• Three-month-old support-turned-resistance line precedes 200-SMA, descending trend line from May to challenge Silver bulls.

Silver Price (XAG/USD) picks up bids to renew its intraday high near $22.60 as it extends the previous day’s rebound from the lowest levels since mid-March amid early Monday. In doing so, the XAG/USD bounces off a 14-week-old horizontal support zone.

Apart from the Silver Price rebound from the key horizontal support zone, the commodity’s upside break of the 61.8% Fibonacci retracement of March-May upside joins bullish MACD signals and the RSI (14) line’s recovery from the oversold territory to favor the XAG/USD bulls.

However, the previous support line stretched from March 21, as well as the 50% Fibonacci retracement, will challenge the Silver Price recovery close to the $23.00 round figure.

Even if the XAG/USD rises past $23.00, the 200-SMA and a seven-week-old falling resistance line, respectively near $23.60 and $23.90, will prod the upside momentum before giving control to the Silver bulls.

On the flip side, the aforementioned 61.8% Fibonacci retracement level and the horizontal support zone, respectively near $22.30 and $22.15-10, restrict the immediate downside of the Silver Price.

Following that, the lows marked in mid-March near $21.50 precede the early March swing high of near $21.30 to challenge the further Silver Price downside.

Silver Price: Four-hour chart

Trend: Limited recovery expected