- Silver regains some positive traction and breaks a three-day losing streak to hit a two-week low.
- The technical configuration favors the prospects of support for the appearance of sales at higher levels.
- Any further move higher could be seen as a selling opportunity and quickly fade.
the silver it attracts some buying on Friday and reverses some of the previous day’s losses to the $23.00 zone, or a two-week low. The white metal is holding on to intraday gains just below $23.00 during the first half of the European session and appears to have halted this week’s pullback from more than eight-month highs for now.
However, the technical situation continues to favor the bears, so some caution is in order before positioning for any positive intra-day move. This week’s break below a two-month-old rising trend line and subsequent slide below the 200-period SMA on the 4-hour chart validate the negative outlook. Furthermore, the oscillators on the daily chart have lost momentum and support the prospects for further selling at higher levels.
Therefore, any subsequent move higher is more likely to be met with a rebid near the $23.70 area, or the 200-period SMA on the 4-hour chart. This, in turn, should cap XAG/USD near the breakout of the aforementioned rising trend line support, now turned resistance, around the $23.90-$24.00 zone. This last area coincides with the high of the previous night’s swing and should act as a pivot point which, if broken out strongly, could lead to some shorting around the white metal.
Next, XAG/USD could try to break through intermediate resistance near the $24.25 zone, followed by the multi-month high around the $24.50-$24.55 region set on Tuesday. Sustained strength beyond the latter will negate any near-term negative outlook and allow bulls to recapture the psychological $25.00 signal for the first time since April 2022.
On the other hand, the $23.20 to $23.10 zone seems to have become immediate support. Selling below $23.00 could drag XAG/USD towards the $22.60-$22.55 zone, en route to the next relevant support near the $22.10-$22.00 horizontal zone. The failure to defend such support levels will be seen as a new trigger for bears and will set the stage for a further depreciation move in the short term.
Silver 4 hour 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.
