- Silver caught new deals on Wednesday and jumped to highs of more than a week in the past hour.
- A sustained move beyond the $ 26.25-30 region could have laid the foundation for further gains.
- The confluence support at $ 25.75-70 should now act as a solid short-term foundation for the metal.
At payment It regained positive traction on Wednesday and soared to more than a week high, closer to $ 26.00 during the early days of the American session. This marked the third day of a positive move in the previous four and pushed the white metal decisively above the $ 26.25-30 bid zone.
The aforementioned hurdle coincided with the 50% Fibonacci level of the upward move of $ 23.78-$ 28.75 and a sustained move beyond may have set the stage for further gains. The positive outlook is reinforced by the recent rally from the confluence region of $ 25.75-70.
The latter comprises the very important 200-day SMA and the 61.8% Fibonacci level, which should continue to act as a key point for short-term traders. This is followed by the June lows, around $ 25.50. If silver breaks below these lows, it will shift the bias in favor of bearish traders.
Meanwhile, any significant pullback could continue to attract some buying near the $ 26.00-$ 25.90 region. This, in turn, should help limit the decline near the $ 25.75-70 confluence support, which should act as a solid foundation for the XAG / USD, at least in the short term.
Meanwhile, the technical indicators on the daily chart have rebounded from negative territory, but have yet to confirm a bullish bias. Therefore, any subsequent bullish movement is more likely to face strong resistance near the $ 26.75-80 region, or oscillating monthly highs touched last week.
This marks the 38.2% Fibonacci level, which if decisively cleared will pave the way for an extension of the ongoing positive momentum. The XAG / USD could then aim to break above the $ 27.00 mark and accelerate the positive momentum even further towards the 23.6% Fibonacci level, around $ 27.50.
Daily chart
Technical levels
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