- Silver gains strong traction for the second day in a row and rises above $19.50.
- The neutral technical setup warrants some caution before positioning for additional gains.
- Sustained strength above the $20.00 level is needed to confirm a further breakout to the upside.
The silver builds on the previous day’s solid recovery from the $18.85-$18.80 support zone and gains some traction for the second day in a row on Friday. The white metal maintains its buying tone throughout the European session and is currently trading around the $19.70-$19.80with a rise of more than 1.30% on the day.
From a technical point of view, the recent two-way price movements in the last two weeks constitute the formation of a rectangle on the daily chart. This points to indecision on the short-term trajectory of XAGUSD. Additionally, the white metal’s inability to find acceptance above the 100 day EMA and failures this week near the psychological level of $20.00 They justify the caution of the bulls.
This makes it prudent to wait for a sustained break through the area before positioning for any further short-term moves higher. With the oscillators on the daily chart moving into the positive territory, XAGUSD could then accelerate the momentum towards intermediate resistance near the trading region. $20.50. The momentum could extend and allow the bulls to re-target towards the level of the $21.00.
On the other hand, the daily low around the area of the $19.40 seems to protect the immediate drop before the round level of the $19.00. Any subsequent slide could still find decent support near the horizontal zone of $18.85-$18.80, which if broken decisively will change the bias in favor of the bears. The subsequent drop has the potential to drag XAGUSD into the support zone of $18.30-$18.25.
Below is closely followed by the level of $18.00below which the white metal could slide further to challenge the yearly low, around the $17.55 played in September.
silver daily chart
silver key levels
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
