- Silver witnessed a subdued/range-bound price action through the early European session.
- The overnight break through the $23.20 key barrier supports prospects for further gains.
- Any meaningful corrective slide might be seen as a buying opportunity and remain limited.
Silver oscillated in a narrow band, around mid-$23.00s through the first half of the trading action on Friday and consolidated its recent gains to one-month tops.
From a technical perspective, this week's strong bullish momentum stalled near a resistance marked by the 61.8% Fibonacci level of the $24.87-$21.42 downfall. The mentioned barrier should now act as a pivotal point, which if cleared decisively will set the stage for a further near-term appreciating move.
Meanwhile, the overnight sustained move beyond the $23.20 confluence hurdle confirmed a near-term bullish breakout through an inverted head and shoulder pattern. Moreover, technical indicators on the daily chart have just started gaining positive traction and further add credence to the constructive outlook.
A sustained strength above the 61.8% Fibo. resistance will reaffirm the bullish bias and allow bulls to aim back to reclaim the $24.00 mark. Some follow-through buying beyond the $24.25-30 region should push the XAG/USD to September monthly swing highs near the $24.75-80 zone en-route the key $25.00 psychological mark.
On the flip side, any meaningful pullback now seems to find decent support and attract fresh buying near the $23.20 confluence resistance/neckline breakpoint. The mentioned region comprises 200-period SMA on the 4-hour chart and the 50% Fibo. level, which should now act as a strong near-term base for the XAG/USD.
Silver 4-hour 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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stabilizes near 1.0550 despite soft German inflation data
EUR/USD fluctuates in a narrow range near 1.0550 in the American session on Thursday. Soft inflation data from Germany makes it difficult for the Euro to gather strength, limiting the pair's upside, while US markets remain closed in observance of the Thanksgiving Day holiday.
GBP/USD trades below 1.2700 on modest USD recovery
GBP/USD struggles to gain traction and moves sideways below 1.2700 on Thursday. The US Dollar corrects higher following Wednesday's sharp decline, not allowing the pair to gain traction. The market action is likely to remain subdued in the American session.
Gold at risk of falling
Gold extends its shallow recovery from Tuesday’s lows as it trades in the $2,640s on Thursday. The yellow metal is seeing gains on the back of cementing market bets that the Fed will go ahead and cut US interest rates at its December meeting.
Fantom bulls eye yearly high as BTC rebounds
Fantom (FTM) continued its rally and rallied 8% until Thursday, trading above $1.09 after 43% gains in the previous week. Like FTM, most altcoins have continued the rally as Bitcoin (BTC) recovers from its recent pullback this week.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.