- Silver, so far, has managed to stay above the round $ 24.00 level.
- Mixed oscillators on hourly / daily charts warrant aggressive traders’ caution.
Silver continued its struggle to take advantage of momentum past the 38.2% Fibonacci level of the $ 26.00-$ 22.17 drop and once again witnessed a modest pullback from the $ 24.20 zone. The white metal, however, has managed to stay above the round $ 24.00 level.
Given Friday’s move beyond the $ 23.80-85 bid zone, the bias still appears to be tilted in favor of bullish traders. The constructive outlook is reinforced by the fact that the oscillators on the hourly charts remain in positive territory and are still far from being in the overbought zone.
Meanwhile, the technical indicators on the daily chart, although they have recovered from the bearish territory, have yet to confirm the positive bias. This warrants some caution for the bulls and makes it prudent to wait for some follow-up purchases before positioning for more profit.
From current levels, the $ 24.20 zone now appears to have emerged as an immediate hurdle ahead of the 50% Fibonacci level, around the $ 24.35-40 region. A sustained force above could lift XAG / USD to the $ 24.75-80 area, or 61.8% of the Fibonacci level, en route to the key psychological $ 25.00 level.
On the other hand, any significant slide below the $ 23.85-80 zone now appears to find decent support near the 23.6% Fibonacci level, around the $ 23.45-40 region. Sustained weakness below could make XAG / USD vulnerable to accelerate the slide further towards the $ 23.00 level.
Failure to defend the aforementioned support levels will be seen as a further trigger for bearish traders and will set the stage for a drop towards intermediate support near $ 22.50. XAG / USD could fall further to challenge the yearly lows, around the $ 22.20-15 zone touched earlier this month.
4 hour silver chart
Technical levels
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
