Silver Price Analysis: XAG/USD struggles to defend 100-SMA breakout

• Silver prices grind higher following the rebound from weekly low.
• Fortnight-old resistance line, sluggish MACD question buyers despite breaking the key SMA.
• Horizontal area from September 20 restricts short-term downside.

Silver (XAG/USD) fades recovery moves from the weekly bottom around $22.60 during Thursday’s Asian session. In doing so, the bright metal fails to extend the 100-SMA break out below a two-week-long resistance line.

As sluggish MACD portrays a lack of market support to the rebound, the metal is likely to drop back towards the key SMA level of $22.57.

However, a three-week-old horizontal support area near $22.10, followed by the $22.00 threshold, will restrict the quote’s further weakness.

Should silver bears dominate past $22.00, $21.60 may offer an intermediate halt during the fall targeting the yearly low near $21.40.

Alternatively, a clear upside break of the stated resistance line around $22.75 needs validation from double tops marked in September at around $23.15.

Also acting as important resistance for silver traders is the 200-SMA level of $23.30.

Silver: Four-hour chart

Trend: Pullback expected