• Silver takes the bids to refresh daily high during the first positive rise in three days.
• Monthly horizontal resistance area challenges buyers ahead of weekly resistance line and the key SMA confluence.
• MACD, RSI hints at a further rebound, 78.6% Fibonacci retracement level limits immediate declines.

Silver (XAG/USD) refreshes intraday high near $21.20 as it extends the bounce off a short-term key Fibonacci support during Wednesday’s Asian session. The bright metal’s rebound from the monthly low, however, has multiple challenges ahead.

That said, the one-month-old horizontal area surrounding $21.30 appears the immediate hurdle for the XAG/USD buyers to tackle.

Following that, a weekly resistance line and a convergence of the 100-SMA and 200-SMA, respectively near $21.80 and $21.90, could test the bulls before directing them to the monthly high near $22.50.

It should be noted that the RSI rebound from oversold territory and the MACD’s impending bull cross tease the metal buyers.

Even so, a clear break of the 78.6% Fibonacci retracement of May 13 to June 06 upside, around $20.90, won’t hesitate to direct the silver sellers towards the previous monthly low of $20.45.

During the quote’s weakness past $20.45, the $20.00 round figure may check the XAG/USD bears.

Silver: Four-hour chart

Trend: Further recovery expected