Silver Price Analysis: XAG/USD finds support near 50 DMA, up a little around mid-$23.00s
- Silver edges higher on Friday, albeit the intraday uptick lacks follow-through.
- The overnight failure near the $24.50 supply zone warrants caution for bulls
- .Sustained break below the $23.00 mark is needed to confirm negative bias.
Silver attracts some buyers near the 50-day SMA on Friday and stalls the previous day's retracement slide from its highest level since April 2022. The white metal sticks to a mildly positive tone through the early European session, though the intraday uptick lacks bullish conviction.
Looking at the broader picture, the XAG/USD has been oscillating in a familiar band over the past one-and-half month or so, forming a rectangle pattern on the daily chart. This points to indecision among traders and warrants some caution before placing aggressive directional bets. The overnight failure to find acceptance above the $24.50 supply zone validates the trading range resistance, which should now act as a pivotal point.
Given that technical indicators on the daily chart have just started drifting in the negative territory, it will be prudent to wait for a sustained move beyond the said barrier before placing bullish bets. The XAG/USD might then aim to reclaim the $25.00 psychological mark for the first time since April 2022. The momentum could get extended towards the next relevant hurdle near the $25.35 region en route to the $26.00 round figure.
On the flip side, any further slide below the $23.40-$23.30 horizontal zone might continue to find decent support near the $23.00-$22.95 region. This is followed by support near the $22.75 area, which if broken decisively could drag the XAG/USD to the next relevant support near the $22.20-$22.15 zone ahead of the $22.00 mark.
Silver daily chart
Key levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
