Silver Price Analysis: XAG/USD crosses monthly resistance to approach $20.00

NEW YORK (Nov 1) Silver price (XAG/USD) takes the bids to refresh intraday high near $19.60 heading into Tuesday’s European session.

In doing so, the bright metal not only justifies the previous day’s rebound from the 50-DMA but also crosses the 100-DMA and a one-month-long resistance line to please XAG/USD buyers hopeful.

That said, firmer RSI (14) and bullish MACD signals also strengthen the odds favoring the commodity’s further upside.

However, a daily closing beyond the 100-DMA hurdle surrounding $19.55 becomes a pre-requisite for the XAG/USD bulls to take control.

Also likely to challenge the silver buyers is the previous weekly top near $19.80, a break of which won’t hesitate to challenge the October month’s peak of $21.24. During the run-up, the $20.00 psychological magnet may act as an extra resistance to watch for the bulls.

On the contrary, a daily closing below the aforementioned resistance line, close to $19.40 by the press time, could reverse the short-term bullish bias.

Even so, the XAG/USD sellers will wait for a clear downside break of the 50-DMA, close to $19.10, to take entries. Following that, an upward-sloping support line from early September, around $18.45 at the latest, appears the last defense of the silver bulls.

FXStreet