- Silver is moving higher for the third day in a row and rises to a week-long high on Thursday.
- A sustained move above the $ 25.60 region is needed to support the prospects for additional gains.
Silver has prolonged this week’s positive momentum and continued to move higher for the third day in a row on Thursday. Momentum has pushed the white metal to one-week highs, around the $ 25.60 region at the start of the European session.
However, the rally has lacked a solid continuation and has struggled to find acceptance above the 61.8% Fibonacci retracement of the $ 26.64 to $ 23.78 drop. This, in turn, warrants some caution before positioning for any further bullish movement.
Meanwhile, the technical indicators on the 1-hour chart have been gaining positive momentum, but have yet to confirm a bullish bias on the daily chart. This makes it prudent for the bulls to expect a sustained move beyond the $ 25.60 level.
The XAG / USD could then accelerate the momentum and point towards a rebound to the $ 26.00 level for the first time since March 22. The next relevant bullish target is near the $ 26.40-50 area, which if exceeded should pave the way for additional gains.
On the other hand, the 50% Fibonacci, around the $ 25.20 region, now appears to defend the immediate drop. This is followed by the key psychological level of $ 25.00, which if decisively broken will negate the positive short-term outlook for XAG / USD.
A subsequent technical sell below the 38.2% Fibonacci, around the $ 24.85 region, will shift the bias in favor of the bears. XAG / USD could become vulnerable and fall towards the $ 24.45 region, where it is 23.6% Fibonacci, on its way to the $ 24.00 level.
Silver 4 hour chart
Silver technical levels
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