- Silver regained positive traction on Thursday and is flirting with multi-month peaks.
- The bias appears tilted in favor of bull traders and supports the prospects for further gains.
- Any corrective pullback now would be seen as a buying opportunity near the mid $ 24.50.
Silver again approached the three-month-plus peaks set on Wednesday, with the bulls making a further attempt to capitalize on momentum beyond the key psychological mark of $ 25.00. The aforementioned area coincides with the 50% Fibonacci level of the $ 28.75-21.42 drop, which if decisively cleared will lay the groundwork for further gains.
Given this week’s bullish break through the 100-day SMA, the 38.2% Fibonacci retracement, sustained force beyond $ 24.50 2 favors bullish traders. The positive short-term outlook is bolstered by bullish technical indicators on the day chart, which are still far from being in overbought territory.
That being said, bulls could still wait for sustained strength beyond the 50% Fibonacci retracement before positioning for any further appreciation moves. The XAG / USD could accelerate momentum towards the next relevant hurdle near the $ 25.55-60 region before aiming to test the 61.8% retracement around $ 26.00.
On the other hand, any significant corrective pullback now appears to attract some buying following declines near the $ 24.50 resistance point. This, in turn, should help limit weakness near the $ 24.00 confluence area, which should now act as a strong foundation for the XAG / USD and a key turning point for short-term traders.
Some follow-up selling below the $ 23.70 area could turn the bias in favor of bearish traders and leave XAG / USD vulnerable for further declines towards $ 23.00. The next relevant support is set near $ 22.50, which if broken could drag the metal towards this year’s lows, around the $ 21.40 area, touched in September.
Silver day chart
Technical levels
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