Silver Price Analysis: XAG/USD battles 3.5-month-old hurdle to regain $24.00

• Silver struggles to extend the biggest daily gains in three months, picks up bids of late.
• Easing bearish bias of MACD, sustained bounce off multi-day-old support line favor further recovery.
• July low can lure bulls but the further upside will have a bumpy road.

Silver (XAG/USD) pares early Asian losses around $23.75, down 0.08% intraday, on Monday. The white metal jumped the most since mid-May the previous day while justifying the bounce from an ascending support line from late September 2020.

The corrective pullback gains support from the easing bearish MACD histogram as the quote struggles with March lows.

Hence, an upside break of the $23.77-85 hurdle is likely to be broken, which in turn could propel the quote towards the last month’s lows near $24.50.

However, any further upside will be challenged by a downward sloping trend line from June 11, near $24.90, followed by a 200-DMA level of $25.90.

Alternatively, the commodity’s sustained weakness below the stated horizontal resistance will fetch it back to the medium-term support line close to the $23.00 round figure.

In a case where silver bears keep reins below $23.00, October’s low of $22.58 and the latest bottom surrounding $22.16 should return to the chart.

Silver: Daily chart

Trend: Further upside expected