Silver Price Analysis: XAG/USD Bulls Take Control Above 200 Hourly SMA

  • Silver appears to be struggling to capitalize on its modest intraday rally on Wednesday.
  • Acceptance above the 200 hourly SMA supports the prospects for some significant gains.
  • A sustained break below the $21.00 level is needed to negate the positive outlook.

Silver (XAG/USD) rises on Wednesday, although it lacks bullish conviction and remains below the high from the day before the start of the European session. The white metal is currently sitting around the $21.30-$21.35 zone and has managed to hold above the 200 hour SMA for now.

From a technical standpoint, the nice intraday rally from the static support just below the $21.00 level favors the bulls. Additionally, positive oscillators on the hourly/daily charts support the prospects for a significant intraday rally for XAG/USD.

That being said, any further move higher could continue to face stiff resistance near the $21.60-$21.70 area. Continuation buying should allow XAG/USD to regain the $22.00 level and retest a 5-month high around the $22.25 area.

On the other hand, the 200 hourly SMA, currently around the $21.1 zone, is likely to make the case for the immediate dip ahead of strong support at $21.00 at $20.90. A convincing break below this last level could nullify the positive outlook and shift the bias in favor of the bears.

XAG/USD could then accelerate the decline to the $20.60-$20.55 zone before finally falling to challenge the psychological $20.00 level. The bearish move could extend further towards strong horizontal support around the $19.60 region.

Silver 1 hour chart

silver

silver key levels

XAG/USD

Overview
Last price today 21.31
today’s daily change 0.07
Today’s daily change in % 0.33
today’s daily opening 21.24
Trends
daily SMA20 21.08
daily SMA50 20.02
daily SMA100 19.65
daily SMA200 21.34
levels
previous daily high 21.45
previous daily low 20.89
Previous Weekly High 21.68
previous weekly low 20.58
Previous Monthly High 21.24
Previous monthly minimum 18.09
Fibonacci daily 38.2% 21.24
Daily Fibonacci of 61.8% 21.11
Daily Pivot Point S1 20.94
Daily Pivot Point S2 20.64
Daily Pivot Point S3 20.38
Daily Pivot Point R1 21.5
Daily Pivot Point R2 21.76
Daily Pivot Point R3 22.06

Source: Fx Street

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