- Silver stages a goodish rebound from over a one-week low touched on Thursday.
- The overnight break and close below the 200-day SMA favours bearish traders.
- Any subsequent move up might confront stiff resistance near the $21.70 region.
Silver regains some positive traction on Friday and recovers a part of the previous day's heavy losses to a one-and-half-week low. The white metal sticks to its gains around the $21.20-$21.25 region through the first half of the European session and for now, seems to have snapped a three-day losing streak.
From a technical perspective, the overnight sustained weakness and a decisive close below the key 200-day SMA favours bearish traders. The said support breakpoint is currently pegged around the $21.40 area and should act as a pivotal point for intraday traders. A sustained strength beyond has the potential to lift the XAGUSD towards the $21.70 horizontal barrier.
The momentum could further get extended towards the $22.00 mark, which is followed by the multi-month peak, around the $22.25 region touched on Tuesday. Some follow-through buying will be seen as a fresh trigger for bulls and set the stage for further gains. Spot prices might then test the $22.50-$22.60 supply zone and eventually reclaim the $23.00 round figure.
On the flip side, the overnight swing low, around the $20.75 region, now seems to protect the immediate downside ahead of the $20.40-$20.35 support. The next relevant support is pegged near the $20.00 psychological mark. Failure to defend the latter will negate any near-term positive bias and make the XAGUSD vulnerable to extending the downward trajectory.
Silver daily chart
Key levels to watch
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