Silver Price Analysis: Dragonfly Doji underpins XAG/USD rebound towards $23.00

• Silver rebounds from three-month low while snapping eight-day downtrend.
• Bullish candlestick, RSI rebound suggests further recovery towards short-term resistance line.
• 200-SMA acts as the key barrier, $22.0-21.95 offers strong downside support.

Silver (XAG/USD) prints mild gains around $22.70 as bears take a breather after ruling for consecutive eight days before Tuesday.

The metal’s recovery could also be linked to the “Dragonfly Doji” bullish candlestick, as well as a rebound in the RSI (14) line from the oversold territory.

However, the XAG/USD upside has limited free room as a downward sloping trend line from mid-April, near $23.00 by the press time.

Following that, the 50-SMA and 200-SMA, respectively around $23.55 and $24.70, will challenge the metal buyers.

On the flip side, the latest bottom surrounding $22.12 may restrict the short-term downside.

During the quote’s weakness past $22.12, the lows marked in January and February around $22.00-21.95 will question the silver bears.

Silver: Four-hour chart

Trend: Further recovery expected