• Silver price struggles to extend the previous day’s pullback from a monthly top.
• Bullish MACD signals, 50-DMA challenge the XAG/USD bears.
• 100-DMA restricts short-term upside, two-month-old horizontal area acts as an extra filter to the south.

Silver price (XAG/USD) remains sidelined at around $19.30 as the 50-DMA restricts the immediate downside of the metal on Wednesday morning in Europe. In doing so, the bright metal fades the previous day’s pullback from the monthly high of around $20.00.

That said, the bullish MACD signals and the failure to break the 50-DMA support near $19.25 challenge XAG/USD sellers.

Also acting as a downside filter is the horizontal area comprising multiple levels marked since mid-July, close to $18.40.

If at all, the silver price remains bearish past $18.40, the odds of witnessing a run-down towards the yearly low of $17.55 can’t be ruled. In a case where XAG/USD stays weak past $17.55, a downward sloping support line from May, near $16.00, will be in focus.

Meanwhile, the quote’s recovery moves could target the fresh monthly high, currently around $20.00, before challenging the 100-DMA hurdle surrounding $20.40.

During the XAG/USD advances beyond $20.40, the previous monthly top around $20.90 and June’s high of $22.51 should lure the commodity buyers.

Overall, the silver price remains sluggish but the bulls have higher odds of taking control.

Silver: Daily chart

Trend: Recovery expected