Silver Price Analysis: XAG/USD recovers early lost ground, seems poised to climb further
|- Silver reverses an intraday dip to the $22.55 area and climbs back closer to the overnight swing high.
- The technical setup favours bullish traders and supports prospects for a further appreciating move.
- Any meaningful pullback might attract some di-buyers and remains limited near the $22.00 mark.
Silver attracts fresh buyers near the $22.55 region on Thursday and steadily climbs back closer to the overnight swing high during the first half of the European session. The white metal is currently placed around the $22.70-$22.75 area and seems poised to build on its intraday ascent.
This week's repeated failures to break through the $22.00 mark and the overnight goodish rebound from the vicinity of the 200-hour SMA favours bullish traders. Moreover, positive technical indicators on daily/hourly charts are still away from being in the overbought zone and add credence to the constructive outlook for the XAG/USD.
This, in turn, supports prospects for a move back towards reclaiming the $23.00 round-figure mark. The momentum could further get extended and allow the XAG/USD to challenge the multi-month peak, around the $23.50-$23.55 zone touched earlier this week. Some follow-through buying should pave the way for an extension of the upward trajectory.
On the flip side, the daily swing low, around the $22.55 region, should protect the immediate downside. Any subsequent fall might continue to find decent support near the 200-hour SMA, currently around the $22.15-$22.10 zone. This is followed by the $22.00 mark, which if broken will negate the positive outlook for the XAG/USD.
The next relevant support is pegged near the $21.40 region ahead of the technical significant 200-day SMA, around the $21.25 area, and the $21.00 mark. The latter should act as a strong base for spot prices. A convincing break below will shift the bias in favour of bearish traders and prompt aggressive technical selling around the XAG/USD.
Silver 1-hour chart
Key levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.