Silver Price Analysis: XAG/USD remains in a familiar range below the $24.00 level

  • The silver market consolidates in a tight range below the $24.00 level on Friday.
  • Recent price movements in both directions warrant some caution before entering directional positions.
  • A convincing break below the 200 SMA on the 4-hour chart should pave the way for deeper losses.

The silver price (XAG/USD) struggles to gain significant traction on Friday and is trading in a tight range at the start of the European session. The white metal is currently sitting around the $23.75 area, almost unchanged on the day, and remains within a broader range it has held for the past three weeks or so.

From a technical standpoint, the repeated failures this week to find acceptance above the round $24.00 level warrant some caution on the part of the bulls. However, XAG/USD has managed to hold above the 200 SMA on the 4-hour chart. The latter is currently near the $23.20 zone and coincides with the lower end of the trading range, which in turn should now act as a key point for short-term traders.

A convincing break below that level will mark a break down, although it will be prudent to wait for selling below the $23.00 round level before positioning for a further move lower. In that case, XAG/USD could extend the recent pullback from a multi-month high and accelerate the decline towards the $22.60-$22.55 zone. Further down, the decline could drag the price down to the next relevant support near the $22.10-$22.00 area.

On the other hand, any positive intraday move above the $24.00 level could face some resistance near the previous day’s high, around the $24.20 region. This is followed by a multi-month high around the $24.50 area – $24.55 hit last week, which if broken decisively will be seen as another trigger for bulls. Higher up, XAG/USD could try to recapture the psychological $25.00 level for the first time since April 2022.

Silver 4 hour chart

fxoriginal

Silver additional technical levels

XAG/USD

Overview
Last price today 23.75
daily change today -0.03
today’s daily variation -0.13
today’s daily opening 23.78
Trends
daily SMA20 23.7
daily SMA50 22.65
daily SMA100 20.89
daily SMA200 21.08
levels
previous daily high 24.18
previous daily low 23.38
Previous Weekly High 24.55
previous weekly low 23.12
Previous Monthly High 24.3
Previous monthly minimum 22.03
Fibonacci daily 38.2 23.88
Fibonacci 61.8% daily 23.69
Daily Pivot Point S1 23.38
Daily Pivot Point S2 22.99
Daily Pivot Point S3 22.59
Daily Pivot Point R1 24.18
Daily Pivot Point R2 24.58
Daily Pivot Point R3 24.98

Source: Fx Street

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