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Silver Price Analysis: XAG/USD advances to multi-week high, above 50% of August-September drop

  • The price of Silver continues to climb higher on Friday and rebounds to a nearly three-week high.
  • A move above the 50% Fibonacci level could have set the stage for a new move higher.
  • Any corrective decline is more likely to find support near the $23.30 confluence.

Silver price (XAG/USD) extends the previous day’s solid recovery move from the $22.80 area, or weekly low, and gains strong follow-through traction on Friday. This is the third consecutive positive day, and also the fifth of the previous six, and lifts the white metal to a two-and-a-half-week high, around the $23.75 area during the European session.

From a technical point of view, a move beyond the 50% Fibonacci retracement of the August-September decline could be considered a new trigger for XAG/USD bulls. Furthermore, the oscillators on the daily chart have just started moving into positive territory and support the prospects of a new appreciation move. Therefore, further strengthening towards the recovery of the round level of $24.00, which coincides with the 61.8% Fibonaci, seems a clear possibility.

Some follow-through buying will set the stage for an extension of the recent rally from an ascending trend line extending from the June low. XAG/USD could then accelerate momentum beyond the intermediate hurdle of $24.30-$24.35, towards the psychological level of $25.00, the August monthly high. The next relevant hurdle lies near the July high, around the $25.25 region, which if cleared decisively should pave the way for additional gains.

On the opposite side, any significant corrective decline seems to find good support near the $23.30 confluence, which comprises the 200-4-hour SMA and the 38.2% Fibonacci. The next relevant support lies near the $23.00 round level, below which XAG/USD could pull back to retest the $22.30 support, a nearly one-month low touched last Thursday. A convincing break below would change the bias in favor of the bears.

4-hour chart of the price of Silver

fxsoriginal

Silver additional technical levels

XAG/USD

Overview
Latest price today 23.7
Today Daily variation 0.29
Today’s daily variation 1.24
Today’s daily opening 23.41
Trends
daily SMA20 23.54
daily SMA50 23.69
SMA100 daily 23.65
SMA200 daily 23.47
Levels
Previous daily high 23.47
Previous daily low 22.81
Previous weekly high 23.29
Previous weekly low 22.3
Previous Monthly High 25.02
Previous monthly low 22.23
Daily Fibonacci 38.2 23.22
Fibonacci 61.8% daily 23.06
Daily Pivot Point S1 22.99
Daily Pivot Point S2 22.57
Daily Pivot Point S3 22.33
Daily Pivot Point R1 23.65
Daily Pivot Point R2 23.89
Daily Pivot Point R3 24.31

Source: Fx Street

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