Silver Price Analysis: XAG/USD bulls have the upper hand above 100-day SMA
|- Silver edged higher for the fifth straight day and climbed to a two-week high on Thursday.
- The overnight sustained move above the 100-day SMA supports prospects for further gains.
- Bulls might now aim to reclaim the $24.00 mark and test the YTD high touched in January.
Silver traded with a mild positive bias through the first half of the European session and was last seen hovering near a two-week high, around the $23.35 region. The uptick, however, lacked bullish conviction as traders now seemed to wait for the release of the US CPI report, due later during the early North American session.
From a technical perspective, the overnight sustained strength above the 100-day SMA could be seen as a fresh trigger for the XAG/USD bulls. Some follow-through buying beyond the $23.40-$23.45 resistance would reaffirm the positive bias and set the stage for an extension of the appreciating move witnessed over the past one week or so.
The positive outlook is reinforced by the fact that technical indicators on the daily chart have just started moving into bullish territory. Hence, a subsequent strength towards reclaiming the $24.00 round-figure mark, en-route the YTD high around the $24.70 area touched on January 20, remains a distinct possibility.
On the flip side, the 100-day SMA resistance breakpoint, around the $23.20-$23.15 region, now seems to protect the immediate downside ahead of the $23.00 mark. A convincing break below would expose the $22.75 support area before the XAG/USD drops to mid-$22.00, which if broken decisively will negate any near-term positive bias.
The XAG/USD would then turn vulnerable and accelerate the slide towards the next relevant support is near the $22.00 mark. Some follow-through selling will shift the bias in favour of bearish traders and pave the way for a slide towards challenging the double-bottom support, around the $21.40 region.
Silver daily chart
Technical levels to watch
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