XAG/USD flirts with ascending channel resistance near $24.70

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  • Silver builds on its steady rise for the third day in a row on Friday.
  • Resistance from a two week old downtrend line could limit the upside.
  • Sustained weakness below $24.00 would set the stage for further losses.

The price of silver (XAG/USD) advances for the third day in a row on Friday and rises to the region of $24.65 to $24.70 during the European session. The bulls may now be looking to build on the momentum beyond the 200 hourly SMA, although any significant upside looks elusive. Further up there is a downtrend line extending from the high made on March 31, around the $24.80 region, which should act as a strong barrier.

The technical indicators on the 1 hour chart have been gaining positive traction and have also recovered from the negative territory on the daily chart. Therefore, a convincing break through the aforementioned confluence hurdle would set the stage for further gains. The up move could eventually lift cash prices into the $25.75-$25.80 zone en route to the $26.00 round level.

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On the other hand, the $24.50 area should now support the immediate drop before trend channel support, currently around the $24.30 region. This is closely followed by the weekly low, around the $24.15-$24.10 region, and the $24.00 round level. Further down, XAG/USD would accelerate the decline towards the intermediate support at $23.60 before falling towards the $23.20-$23.15 area.

Silver 1 hour chart

Silver additional levels

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Source: Fx Street

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