Silver Price Analysis: XAG/USD challenges bearish channel around $22.50

• Silver eases from short-term channel’s resistance line, snaps two-day uptrend.
• Bullish MACD signals, sustained bounce off 78.6% Fibonacci retracement keep buyers hopeful.

Silver (XAG/USD) grinds higher around $22.50, down 0.14% intraday, amid early Monday.

In doing so, the bright metal fades Friday’s bounce off 78.6% Fibonacci retracement (Fibo.) level of September-November upside while easing from a resistance line of the two-week-old descending trend channel.

Given the bullish MACD and the quote’s repeated bounces off the key stated key Fibo. level surrounding $22.25-20, silver prices are likely to recover.

However, a clear upside break of the immediate hurdle surrounding $22.65 becomes necessary for the bulls to retake controls.

Even so, early November’s low near the $23.00 threshold and 200-SMA level of $24.00 will be tough nuts to crack for the XAG/USD bulls.

On the contrary, pullback moves will retest the stated Fibonacci retracement level of $22.25-20, a break of which will direct silver prices to the $22.000 and then to the channel’s support line near $21.80.

Should the commodity prices remain bearish past $21.80, the yearly low marked in September around $21.40 will be in focus.

Silver: Four-hour chart

Trend: Corrective pullback expected