- The price of Silver gains positive traction for the second day in a row, although the setup warrants caution for the bulls.
- Any subsequent bullish move is likely to face a strong barrier and remain capped near the 200-day SMA.
- A break below a multi-month ascending trend line support will be considered a new trigger for bears.
The price of Silver (XAG/USD) attracts new buyers near the $23.00 level on the first day of a new week and maintains its modest intraday gains during the early stages of the European session. The white metal is currently trading around $23.15, up 0.45% on the day, although still below Friday’s high.
Looking at the bigger picture, XAG/USD recovered last week from the $22.30 support zone, which represents an ascending trend line extending from the June monthly low. The subsequent strength favors bullish traders, although technical indicators on the daily chart are yet to confirm a positive outlook and warrant some caution before positioning for additional gains.
Therefore, any further move higher is likely to face strong resistance and remain capped near the technically significant 200-day SMA, which currently sits around the $23.45 area. This zone should act as a key point, above which XAG/USD is more likely to break the 100-day SMA barrier near the $23.80 region and aim to regain the $24.00 level.
The next major hurdle lies near the $24.30-$24.35 area, which if decisively overcome, will lift XAG/USD towards the psychological level of $25.00. The latter coincides with the August monthly high and some follow-through buying, leading to further gains beyond the July high, around the $25.25 region, will shift the short-term bias in favor of the bulls.
On the other hand, the $22.80 area seems to protect the immediate decline before the $23.30 area, the almost one-month low reached last Thursday. A convincing break below that level will confirm a fresh breakout and make XAG/USD vulnerable to accelerate the decline towards the next relevant support near the $21.25 area before finally falling to the $21.00 level.
Silver Daily 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.
