Silver Price Analysis: XAG/USD remains depressed near $24.00, downside seems limited
|- Silver struggles to capitalize on a two-day-old strong uptrend and edges lower on Friday.
- The technical setup favours bullish traders and supports prospects for additional gains.
- Corrective slide back towards the 200-day SMA could get bought into and remain limited.
Silver (XAG/USD) comes under some selling pressure on Friday, snapping a two-day winning streak to over a one-week high touched the previous day and stalling this week's strong recovery from mid-$22.00s or a near one-month low. The white metal remains on the defensive through the early European session and currently trades just above the $24.00 round figure, down nearly 0.40% for the day.
From a technical perspective, the XAG/USD earlier this week showed some resilience below and defend an upward-sloping sloping line extending from a multi-month low touched in October. The subsequent surge beyond the very important 200-day Simple Moving Average (SMA) favours bullish traders and supports prospects for a further appreciating move. Moreover, oscillators on the daily chart have again started gaining positive traction and validate the near-term constructive setup.
Hence, any subsequent decline might still be seen as a buying opportunity and remain limited near the 200-day SMA, currently pegged near the $23.60 region. Some follow-through selling, however, might turn the XAG/USD vulnerable to accelerate the slide towards the $23.00 mark en route to the aforementioned ascending trend-line support, around the $22.85-$22.80 region. A convincing break below the latter will negate the positive outlook and shift the bias in favour of bearish traders.
On the flip side, bulls might wait for a move beyond the $24.20 area before placing fresh bets and positioning for a move towards reclaiming the $25.00 psychological mark. The upward trajectory could get extended further towards the $25.25 intermediate hurdle en route to the $25.45-$25.50 region and the $26.00 neighbourhood, or the highest level since May 5 touched earlier this month.
Silver daily chart
Technical 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.