Silver Price Analysis: XAG/USD recovery needs validation from $19.10

• Silver price jumps back beyond 61.8% Fibonacci retracement, off from two-week low.
• RSI, MACD suggests further upside towards weekly resistance line.
• Convergence of 200-SMA, previous support line from early September challenge bulls.
• Sellers should break $18.30 before retaking the control.

Silver price (XAG/USD) extends recovery from a fortnight low to $18.55 during early Tuesday morning in Europe.

In doing so, the bright metal regains its place beyond the 61.8% Fibonacci retracement level of September 01-12 upside, after a brief fall the previous day.

Given the receding bearish bias of the MACD and the recently improving RSI (14) from the oversold territory, the XAG/USD prices are likely to approach a downward sloping resistance line from Friday, close to $18.70 at the latest.

However, a confluence of the 200-SMA and the support-turned-resistance line from September 01, close to $19.10, appears a tough nut to crack for the metal sellers.

If at all the silver price rallies beyond $19.10, the upside momentum won’t hesitate to challenge the monthly peak near $20.00.

Alternatively, the 61.8% Fibonacci retracement level of $18.50 acts as immediate support for the metal traders to watch for fresh impulse.

Also acting as the downside filter is the broad horizontal support around $18.30-35, established on August 30.

Silver: Four-hour chart

Trend: Limited recovery expected