untitled design

Silver Price Analysis: XAG/USD Bulls are in Control Above the Breakout of $24.35-$24.40 Resistance

  • 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


Last price today 24.56
Today Daily Variation -0.05
today’s daily variation -0.20
today’s daily opening 24.61
daily SMA20 23.36
daily SMA50 23.6
daily SMA100 23.96
daily SMA200 23.4
previous daily high 25.02
previous daily low 24.53
Previous Weekly High 24.38
previous weekly low 22.67
Previous Monthly High 25.27
Previous monthly minimum 22.52
Fibonacci daily 38.2 24.72
Fibonacci 61.8% daily 24.83
Daily Pivot Point S1 24.42
Daily Pivot Point S2 24.24
Daily Pivot Point S3 23.94
Daily Pivot Point R1 24.91
Daily Pivot Point R2 25.2
Daily Pivot Point R3 25.39

Source: Fx Street

You may also like

Most popular