Silver Price Analysis: XAG/USD refreshes weekly top, seems poised to appreciate further
|- Silver scales higher for the third straight day and climbs to a fresh weekly high on Thursday.
- The technical setup seems tilted in favour of bulls and supports prospects for further gains.
- A sustained break below the $24.00 mark is needed to negate the near-term positive bias.
Silver gains strong follow-through positive traction for the third successive day on Thursday and climbs to a fresh weekly top during the early part of the European session. The white metal currently trades just above the $25.00 psychological mark and remains well within the striking distance of over a two-month peak touched last week.
The technical setup, meanwhile, favours bullish traders and suggests that the path of least resistance for the XAG/USD is to the upside. The positive outlook is reinforced by the fact that oscillators on hourly/daily charts are holding comfortably in bullish territory and are still far from being in the overbought zone. That said, it will still be prudent to wait for some follow-through buying beyond the $25.25 area, or the monthly peak, before positioning for any further appreciating move.
The XAG/USD might then accelerate the positive momentum towards the $25.50-$25.55 intermediate hurdle and eventually aim towards reclaiming the $26.00 round figure. This is closely followed by the YTD peak, around the $26.10-$26.15 area touched in May. A sustained strength beyond will be seen as a fresh trigger for bullish traders and pave the way for additional gains.
On the flip side, any corrective pullback is more likely to attract some buying near the $24.85-$24.80 region. This should help limit the downside for the XAG/USD near the $24.60 zone. Failure to defend the said support will expose the weekly low, around the $24.25 region, which if broken decisively will negate the positive outlook and shift the bias in favour of bearish traders. Silver might then drop further below the $24.00 mark, towards the $23.65-$23.60 support.
The XAG/USD could then extend the downward trajectory further towards the $23.20-$23.15 region. Some follow-through selling below the $23.00 mark, nearing the very important 200-day SMA, will make silver vulnerable to challenge the multi-month low, around the $22.15-$22.10 area.
Silver daily chart
Key levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.