- On Wednesday, silver hit one-week highs, albeit without continuity.
- The technical situation warrants some caution before making new bullish bets.
- A sustained move beyond the $23.70-$75 zone would undo the downtrend.
The Silver it attracts new purchases after the back and forth movements of the day before and reaches maximum of a week, around the area of ​​$23.50 on Wednesday. The white metal, however, struggles to capitalize on the move or find acceptance above the 100-day SMA and retreats to the $23.30 region early in the American session.
Daily chart oscillators, meanwhile, have rallied from lower levels, although they remain in negative territory. Therefore, any further move higher is likely to face stiff resistance near the $23.70-$23.75 zone, or the 38.2% Fibonacci retracement level of the March-May rally. If strength holds above that barrier, the recent pullback from more than a year highs will signal that it has come to an end and turn the tide in favor of bulls.
XAG/USD could then break above $24.00 and accelerate momentum towards the next relevant hurdle near the $24.20-$24.25 zone on the way to strong horizontal support at $24.50-$24.60. The latter coincides with the 23.6% Fibonacci level, above which a fresh round of shorts should allow the bulls to recapture the key psychological $25.00 level. The bullish trajectory could extend towards the $25.30-$25.35 supply zone.
On the other hand, the 50% Fibonacci level, just below the round figure of $23.00, seems to protect the immediate fall before the monthly low, around the $22.70-$22.65 zone. Continuation of selling could trigger further bearish momentum and drag XAG/USD below the 61.8% Fibonacci level around the $22.25 zone towards $22.00.
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.
