Silver Price Is Likely To Remain In Recovery Mode

• Silver price extends the previous day’s recovery from the lowest levels since early November 2022.
• Sustained break of 100-HMA, bullish MACD signals and ascending trend channel keep buyers hopeful.
• Overbought RSI conditions challenge XAG/USD run-up past $21.20 hurdle, 200-HMA act as additional upside filter.

Silver price (XAG/USD) remains firmer around $21.10 as bulls extend the previous day’s rebound from the multi-day low during early Wednesday. In doing so, the bright metal marches with a two-day-old ascending trend channel while justifying the bullish MACD signals.

However, the overbought conditions of the RSI (14) join multiple technical hurdles around $21.20 to challenge the metal’s further upside momentum. Among the key resistances, the February 17 swing low and the 50% Fibonacci retracement level of the pair’s February 22-28 fall gain major attention. Also challenging the buyers is the upper line of the stated bullish channel.

Even if the XAG/USD rises past $21.20, the 200-Hour Moving Average (HMA) could challenge bullion buyers near $21.35.

Following that, a north-run towards the late February swing high near $22.00 can’t be ruled out.

On the contrary, a downside break of the 100-HMA, around $21.00 by the press time, could challenge the nearby bullish chart formation by poking the $20.90 support.

Should the quote successfully defies the ascending trend channel, the previous monthly low near $20.40 and the $20.00 psychological magnet will gain the market’s attention.

To sum up, the Silver price is likely to remain in recovery mode but the upside room appears limited.

Silver price: Hourly chart

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Trend: Limited upside expected