- Silver continued its struggle to break a confluence barrier near the $24.30-$24.35 zone.
- The technical set-up favors bullish traders and supports the prospects for additional short-term gains.
- A convincing break below an upsloping channel is needed to nullify the constructive outlook.
XAG silver flickered between tepid gains and minor losses throughout the mid-European session and was last seen trading in neutral territory, just above the $24.00 round level.
Looking at the bigger picture, the recent positive move stalled near a confluence hurdle, around the $24.30-$24.35 zone, or a nearly one-month high set the day before. Said barrier comprises a technically significant 200-day SMA and a downward sloping trend line that extends from July 2021.
Since the strong bullish move seen since the beginning of this month has been along an upward sloping channel, the bias appears to be tilted in favor of the bullish traders. The positive outlook is reinforced by the bullish oscillators on the daily chart, which are still far from being in the overbought zone.
The technical setup supports prospects for an eventual breakout through the aforementioned confluence resistance and a move towards testing the upper end of the ascending channel. The latter, currently pegged near the $24.60-$24.70 area, coincides with the 2022 high and should act as a pivotal point.
Sustained strength beyond will be seen as a new trigger for bullish traders and pave the way for a further short-term appreciation move. XAG/USD could then break above the key psychological $25.00 level and accelerate the momentum towards the November 2021 high around the $25.40 zone.
On the other hand, the trend channel support around the $23.85-$23.80 region should protect the price from an immediate drop. A subsequent drop below the $23.70 support could change the short-term bias in favor of bearish traders and pave the way for a significant correction in XAG/USD.
The next relevant support is pegged near the $23.35-$23.30 region before XAG/USD slides further towards the $23.00 round figure mark. The downward trajectory could extend further and drag the white metal towards the horizontal support at $22.65.
silver daily chart
Additional technical levels
XAG/USD
| Panorama | |
|---|---|
| Last Price Today | 24.21 |
| Today’s Daily Change | 0.07 |
| Today’s Daily Change % | 0.29 |
| Today’s Daily Opening | 24.14 |
| Trends | |
|---|---|
| 20 Daily SMA | 23.22 |
| 50 Daily SMA | 23.09 |
| 100 Daily SMA | 23.32 |
| 200 Daily SMA | 24.23 |
| levels | |
|---|---|
| Previous Daily High | 24.36 |
| Previous Daily Minimum | 23.91 |
| Previous Maximum Weekly | 24.09 |
| Previous Weekly Minimum | 23.08 |
| Monthly Prior Maximum | 24.7 |
| Previous Monthly Minimum | 21.96 |
| Daily Fibonacci 38.2% | 24.19 |
| Daily Fibonacci 61.8% | 24.08 |
| Daily Pivot Point S1 | 23.91 |
| Daily Pivot Point S2 | 23.68 |
| Daily Pivot Point S3 | 23.46 |
| Daily Pivot Point R1 | 24.37 |
| Daily Pivot Point R2 | 24.6 |
| Daily Pivot Point R3 | 24.83 |
Source: Fx Street
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