- Silver struggled to capitalize on last week’s bullish breakout momentum through a trading range.
- The formation of an uptrend channel supports the prospects for additional short-term gains.
- The surge of buying on the dips adds credibility to the positive outlook and favors bull traders.
At payment It attracted some buying near the $ 24.20 resistance break point and has now trimmed a portion of its intraday losses. It was observed that the raw material is trading around $ 24.50 during the early days of the American session, losing 0.70% on the day.
Looking at the technical picture, the recent positive move over the last two weeks or so has been along an upward sloping channel on the short-term charts. This, coupled with Friday’s post-NFP bullish breakout through a multi-day trading range hurdle, favors bullish traders.
The positive outlook is reinforced by the fact that the technical indicators on the daily chart have only just started to move into bullish territory. This, in turn, supports the prospects for a further short-term appreciation move amid the absence of relevant economic releases in the US markets.
That said, a strong rally in US Treasury yields and demand for the US dollar prevented the bulls from making aggressive bets. This makes it prudent to wait for a sustained move past the daily highs, around the $ 24.80-85 zone, before positioning for any significant upside.
The XAG / USD could accelerate the momentum to regain the key psychological mark of $ 25.00 and move higher towards the $ 25.25-30 area. Momentum could extend toward an intermediate hurdle near the $ 25.65 zone en route to August’s monthly highs around $ 26.00.
On the other hand, the $ 24.20 zone could continue to protect the immediate drop. This is closely followed by the lower limit of the aforementioned trend channel, around the $ 24.05-$ 24.00 zone. A convincing break below said level is needed to negate the bullish bias.
The subsequent technical selling has the potential to drag the XAG / USD into the $ 23.80-75 horizontal zone en route to the $ 23.50-45 zone and strong support near the $ 23.00 round level.
4 hour silver chart
Technical levels
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