- Silver struggled to capitalize on the good move the day before to multi-week highs.
- Mixed technical indicators on the hourly / daily charts prevented the bulls from making aggressive bets.
Silver witnessed moderate / in-range price action on Thursday and consolidated the previous day’s strong move to more than three-week highs. The white metal now appears to have formed a strong base near $ 24.00, which coincides with the 50% Fibonacci level of the $ 26.00-22.17 drop.
Meanwhile, the upside remains limited near the $ 24.20-25 bid zone. This is followed by the 200-period SMA on the 4-hour chart, around the $ 24.35 zone and the 61.8% Fibonacci level, near the $ 24.55 zone. A sustained move beyond should pave the way for a further short-term appreciation move.
Meanwhile, technical indicators on the hourly charts have been gaining positive traction, although they have yet to confirm a bullish bias on the daily chart. This also makes it prudent to wait for a strong follow-up buy beyond the aforementioned barriers before placing aggressive bullish bets.
A sustained advance will be seen as a new trigger for bull traders and will push the XAG / USD further towards the recovery of the psychological $ 25.00 level. Momentum could further extend towards an intermediate hurdle near the $ 25.35-40 zone, en route to the $ 25.80 bid zone.
On the other hand, the breaking point of the horizontal resistance at the $ 23.85-80 zone now appears to protect the immediate decline. Some follow-up selling below the 38.2% Fibonacci level, around the $ 23.60 region, could further accelerate the decline towards the 23.6% Fibonacci level, around the round $ 23.00 level.
4 hour silver chart
Technical levels
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