Silver Price Analysis: XAG/USD bulls retain control above $23.50, highest since February


  • Silver gains strong positive traction on Thursday and touched its highest level since early February.
  • The technical setup favours bullish traders and supports prospects for a further appreciating move.
  • A convincing break below the $22.00 mark is needed to negate the near-term constructive outlook.

Silver catches fresh bids on Thursday, following the previous day's two-way/directionless price moves, and rallies to a nearly two-month high during the early European session. The white metal is currently placed around the $23.60-$23.65 region, up over 1% for the day, and seems poised to prolong its recent appreciating move from levels just below the $20.00 psychological mark, or the YTD low touched earlier this March.

Against the backdrop of the recent breakout through the 61.8% Fibonacci retracement level of the pullback from over a nine-month peak, the ongoing positive move adds credence to the bullish outlook for the XAG/USD. Hence, some follow-through strength, back towards the $24.00 mark, looks like a distinct possibility. The momentum could get extended further towards the $24.65 region (multi-month peak touched in February) en route to the $25.00 psychological mark.

That said, Relative Strength Index (RSI) on the 1-hour chart is already flashing overbought conditions and remains close to 70 on 4-hour/daily charts. This makes it prudent to wait for some near-term consolidation or a modest pullback before placing fresh bullish bets. Any meaningful corrective slide, however, might now be seen as a buying opportunity near the $23.00 round-figure mark and remain limited near the 61.8% Fibo. level resistance breakpoint, around the $22.80 area.

The latter should now act as a strong base and a pivotal point, which if broken decisively might prompt some technical selling. A subsequent slide below the $22.50 region could then drag the XAG/USD towards the $22.20 intermediate support en route to the $22.00 round figure. This is closely followed by the $21.75-$21.70 zone. A convincing break below said support levels is needed to negate the positive outlook and shift the near-term bias in favour of bearish traders.

Silver daily chart

fxsoriginal

Key levels to watch

XAG/USD

Overview
Today last price 23.64
Today Daily Change 0.30
Today Daily Change % 1.29
Today daily open 23.34
 
Trends
Daily SMA20 21.88
Daily SMA50 22.2
Daily SMA100 22.55
Daily SMA200 21
 
Levels
Previous Daily High 23.42
Previous Daily Low 23.05
Previous Weekly High 23.52
Previous Weekly Low 22.16
Previous Monthly High 24.64
Previous Monthly Low 20.42
Daily Fibonacci 38.2% 23.28
Daily Fibonacci 61.8% 23.19
Daily Pivot Point S1 23.12
Daily Pivot Point S2 22.9
Daily Pivot Point S3 22.75
Daily Pivot Point R1 23.49
Daily Pivot Point R2 23.64
Daily Pivot Point R3 23.86

 

 

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