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Silver Price Analysis: XAG/USD Bulls Looking to Take Control, Waiting for a Move Above 200 Hourly SMA

  • Silver attracts some buying on Wednesday and hits a multi-day high.
  • This move confirms the break of a descending trend line from a week ago.
  • A sustained break below the $21.00 level is needed to undo the uptrend.

The silver price (XAG/USD) reverses an intraday dip below the $21.00 level and hits a four-day high during the European session on Wednesday. The white metal is currently trading around the $21.25-$21.30 zone, up close to 0.80% on the day, as bulls now wait for a sustained move above the 200 hour SMA before opening new positions. .

From a technical point of view, the momentum confirms the breakout of the downtrend line resistance from a week ago. Meanwhile, the oscillators on the daily chart remain in the bullish zone and have just started to gain positive traction on the hourly charts. This, in turn, supports prospects for an extension of the rally from a nearly two-week low, around the $20.60-$20.55 area touched on Monday.

Continuation buying beyond the $21.35 zone (200 hour SMA) will reaffirm the constructive outlook and lift XAG/USD towards the $21.75-$21.80 resistance zone. This is followed by the $22.00 level and a five-month high around the $22.25 area, which if broken will set the stage for a move towards the $22.50 to $22.60 area. Higher up, prices could retrace the round $23.00 level.

On the other hand, the $21.00-$20.90 zone could continue to defend the immediate fall. Such support represents a rising trend line extending from the weekly low hit on Monday. A convincing break below this region will undo the positive setup and shift the short-term bias in favor of the bears. XAG/USD could then slide towards the $20.60-$20.55 zone (weekly low) and the psychological $20.00 level.

Silver 1 hour chart

fxoriginal

silver key levels

XAG/USD

Overview
Last price today 21.25
today’s daily change 0.16
Today’s daily change in % 0.76
today’s daily opening 21.09
Trends
daily SMA20 20.61
daily SMA50 19.83
daily SMA100 19.54
daily SMA200 21.4
levels
previous daily high 21.34
previous daily low 20.83
Previous Weekly High 22.25
previous weekly low 20.75
Previous Monthly High 21.24
Previous monthly minimum 18.09
Fibonacci daily 38.2% 21.14
Daily Fibonacci at 61.8% 21.02
Daily Pivot Point S1 20.83
Daily Pivot Point S2 20.58
Daily Pivot Point S3 20.32
Daily Pivot Point R1 21.34
Daily Pivot Point R2 21.6
Daily Pivot Point R3 21.85

Source: Fx Street

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