Silver Price Analysis: XAG/USD sticks to gains above $24.00, eyes multi-month top set in January

Silver scales higher for the third successive day and touches a fresh weekly high on Thursday.
The formation of a rectangle on the daily chart warrants caution before placing directional bets.
The technical setup, however, favours bulls and supports prospects for an eventual breakout.

Haresh Menghani FXStreet

Silver builds on this week's move up from sub-$23.00 levels and gains some follow-through traction for the third successive day on Thursday. The white metal steadily climbs to $24.30 horizontal resistance during the early European session and moves well within the striking distance of the multi-month top touched in January.

Looking at the broader picture, the XAG/USD has been oscillating in a familiar trading range over the past one-and-half month or so. The price action, meanwhile, constitutes the formation of a rectangle pattern on the daily chart and points to indecision among traders. This, in turn, warrants caution for aggressive traders and before positioning for a firm near-term direction.

That said, positive technical indicators on the daily chart favour bulls and support prospects for an eventual breakout to the upside. A sustained strength beyond the trading range resistance, around the $24.50-$24.55 region, will reaffirm the constructive outlook. The XAG/USD might then aim to reclaim the $25.00 psychological mark for the first time since April 2022.

Some follow-through buying has the potential to lift the XAG/USD towards the next relevant hurdle near the $25.35 region en route to the $26.00 round figure.

On the flip side, the $24.00 mark now seems to protect the immediate downside. Any subsequent pullback might continue to attract some buyers near the $23.50-$23.45 region, below which the XAG/USD could slide to the $23.00 level. This is followed by support near the $22.75 region, which if broken decisively will expose the next relevant support near the $22.20-$22.15 zone.

Silver daily chart

Key levels to watch

XAG/USD

Overview
Today last price	24.12
Today Daily Change	0.12
Today Daily Change %	0.50
Today daily open	24

Trends
Daily SMA20	23.75
Daily SMA50	23.37
Daily SMA100	21.62
Daily SMA200	21.02

Levels
Previous Daily High	24.04
Previous Daily Low	23.37
Previous Weekly High	24.3
Previous Weekly Low	22.76
Previous Monthly High	24.55
Previous Monthly Low	22.76
Daily Fibonacci 38.2%	23.78
Daily Fibonacci 61.8%	23.62
Daily Pivot Point S1	23.57
Daily Pivot Point S2	23.13
Daily Pivot Point S3	22.89
Daily Pivot Point R1	24.24
Daily Pivot Point R2	24.48
Daily Pivot Point R3	24.91

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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