- Silver gained some traction on Thursday and is now looking to take advantage of the overnight rally.
- Repeated failures near $25.00 and the 200-hour SMA resistance favor bearish traders.
- A sustained break below the $24.00 round figure will set the stage for additional short-term losses.
the silver attracted some buying on dips near $24.25 on Thursday and rose to a fresh daily high during the mid-European session. The white metal was last seen trading at $24.50 and is now looking to ride the previous day’s bounce from a one-week low.
From a technical perspective, the recent repeated failures near the $25.00 level and the appearance of fresh selling around the 200-hour SMA favors the bearish traders. The latter, currently around the $24.65-$24.70 region, should continue to act as an immediate barrier.
As the technical indicators on the hourly charts have rebounded from the negative territory, some follow-on buying could spark some short-covering moves. XAG/USD could then look to break above the $25.00 level and accelerate the momentum towards the $25.35-$25.40 resistance area. The bulls could eventually aim to test the next relevant hurdle around the $25.75-$25.80 area and push XAG/USD further towards the round $26.00 level.
On the other hand, the $24.25-$24.20 zone now seems to protect the immediate drop ahead of the $24.00 level. Said handle coincides with the very important 200-day SMA, which if broken decisively will set the stage for another short-term depreciation move. XAG/USD would become vulnerable to accelerate the decline towards the next relevant support near the $23.60 region and drop further towards the $23.20-$23.15 support zone.
1 hour chart
Technical levels
Source: Fx Street
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