- Silver price falls for the second day in a row and pulls back further from a one-month high.
- The technical situation favors the bulls and supports the possibility of buying at lower levels.
- A convincing break below the $24.00 level is needed to negate the short-term positive outlook.
Silver (XAG/USD) extends the previous day’s rejection dip from the psychological $25.00 level, at more than a month highs and remains under some selling pressure for the second day in a row on Thursday. However, the white metal manages to recover a bit from the daily low and trades just above $24.50 during the early part of the European session, down less than 0.30% on the day.
From a technical point of view, the break this week of the $24.35 barrier to $24.40 was considered a new trigger for the bulls. Furthermore, the oscillators on the daily chart remain comfortably in positive territory and are still far from the overbought zone. This, in turn, supports the prospects for some buying at lower levels and suggests that the path of least resistance for XAG/USD is to the upside. Therefore, any further slide below said resistance-turned-support is more likely to find decent support and remain capped near the $24.00 level.
The latter is close to the 200 hourly SMA and should act as a solid base for XAG/USD. However, continued weakness below could trigger technical selling and drag the white metal towards the $23.55 area. This zone is closely followed by support near $23.40, which represents the 200-day SMA, which if broken decisively could turn the short-term trend in favor of the bears and pave the way for a fall back. to test levels below $23.00 on the way to the $22.20 area, or the lowest level since the June 23 hit earlier this month.
On the other hand, the $24.70 area could act as immediate resistance ahead of the $25.00 level. Some continuation buying has the potential to lift XAG/USD beyond the $25.25 intermediate hurdle, which represents the July high, towards the round $26.00 level. This is closely followed by the yearly high, around the $26.15 region hit in May, which if cleared should pave the way for an extension of the uptrend seen over the past two weeks.
Silver 1 hour chart
Silver additional technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
