- Silver is back from the high of almost a year reached this Wednesday.
- The technical situation continues to favor the bulls and supports the prospects for further gains.
- If the decline continues, support is likely to lie near the $24.40-30 resistance.
The silver It retreats from the area of $25.10-$25.15, that is, the maximum of a year reached this Wednesday, and cuts part of the strong gains of the previous day. The white metal remains depressed early in the North American session and is currently near the lower end of its daily range around the $24.85-$24.80 area.
From a technical perspective, the sustained move overnight and acceptance above the strong $24.30-$24.40 horizontal barrier was seen as a new trigger for XAG/USD bulls. A subsequent strengthening beyond the previous year’s high, around the $24.65 area, could already have set the stage for an extension of the recent strong bull run witnessed over the past month or so.
The positive outlook is bolstered by the fact that XAG/USD remains comfortably above the technically significant 50-, 100-, and 200-day SMAs. That being said, the RSI on the daily chart is showing overbought conditions and makes it prudent to wait for short-term consolidation or a modest retracement before making further bullish bets.
In the meantime, any significant pullback is likely to attract new buyers and remain capped near the breakout of $24.40-$24.30 resistance, now turned support. This should now act as a pivot point, which if broken decisively could trigger some technical selling and make XAG/USD vulnerable to weakening below $24.00 towards a test of the weekly lows around the $24.00 area. from $23.60-$23.55.
silver daily chart
Key levels to watch
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.
