XAG(Silver) Price Analysis: XAG/USD Rebound Below $21.20 Barrier Looks Unstoppable

While bulls continue to build on Tuesday's recovery from the multi-day low, XAG(Silver) is currently up at about $21.10. The bright metal marches with a two-day-old ascending trend channel while justifying the bullish MACD indications.

However, the metal's upward trend is threatened by the overbought conditions of the RSI (14), which joins other technical obstacles near $21.20. The February 17 swing low and the 50% Fibonacci retracement level of the pair's February 22–28 decline are two important resistances to pay close attention to. The upper line of the above bullish channel presents another obstacle for the purchasers.

• The price of silver continues its upward trend from the previous day's lows, which date back to early November 2022.
• The XAG/USD run-up is hampered by overbought RSI conditions and is further limited upward by the 200-HMA.
• Buyers are encouraged by the sustained break of the 100-HMA, bullish MACD signals, and the ascending trend channel.

The 200-Hour Moving Average (HMA) may present a barrier to bullion buyers near $21.35 even if the XAG/USD surges over $21.20. After that, a move north towards the swing high in late February near $22.00 cannot be ruled out.

On the other hand, a negative breach of the 100-HMA, which was around $21.00 at the time of publication, might undermine the recent bullish chart formation by teasing the $20.90 support.

The last monthly low near $20.40 and the $20.00 psychological magnet will catch the market's attention if the quote is able to defy the ascending trend channel.

In conclusion, the price of silver is probably going to continue rising, but the upside potential seems to be constrained.