- Silver regains ground on Friday, halting this week’s decline from a multi-month high.
- The technical situation favors the bulls and supports the prospects for additional intraday gains.
- A convincing break below the confluence support at $23.15 is needed to nullify the positive bias.
The silver found demand on Friday and is snapping a two-day losing streak, halting this week’s decline from eight-month highs. The white metal maintains its positive tone in the European session and recently made new highs at $23.80, during the first half of the European session and is currently near the daily maximum, around the $23.70 zone.
From a technical point of view, the Some buying near the breakout of the $23.40/35 horizontal resistance, now turned support, favors the bulls. The tight setup is reinforced by the fact that the oscillators on the daily chart maintain their positive bias and have gained traction again on the 4-hour chart.
Therefore, further strengthening, back towards the $24.00 recovery, remains a distinct possibility. The next major hurdle lies near the multi-month high near the $24.30 zone hit on Wednesday, which if cleared should send XAG/USD towards the psychological $25.00 area with an intermediate hurdle near the $24.60/ zone. $24.70.
On the other hand, resistance turned support at $24.40/$35, also the daily low, should protect the immediate fall ahead of the confluence support at $24.15. The latter comprises the 100-period SMA on the 4-hour chart and an uptrend line extending from the November low, which, in turn, should act as a solid base for the XAG/ USD.
A convincing break, leading to a subsequent slide below $23.00, will nullify the positive outlook and shift the bias in favor of the bears. XAG/USD could then become vulnerable and accelerate the decline to test the $22.00 round figure, with some intermediate support near the $22.55/$50 horizontal zone.
Silver 4 hour chart
key 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.
