Silver Price Analysis: XAG/USD sits near daily high, seems poised to appreciate further
|- Silver regains positive traction on Friday and stalls this week’s pullback from a multi-month top.
- The technical setup favours bullish traders and supports prospects for additional intraday gains.
- A convincing break below the $23.15 confluence support is needed to negate the positive bias.
Silver catches fresh bids on Friday and snaps a two-day losing streak, stalling this week's retracement slide from an eight-month high. The white metal maintains its bid tone through the first half of the European session and is currently placed near the daily high, around the $23.75 zone.
From a technical perspective, the emergence of some buying near the $23.40-$23.35 horizontal resistance breakpoint, now turned support, favours bullish traders. The constrictive setup is reinforced by the fact that oscillators on the daily chart maintain their positive bias and have again started gaining traction on the 4-hour chart.
Hence, a subsequent strength, back towards reclaiming the $24.00 mark, remains a distinct possibility. The next relevant hurdle is pegged near the multi-month top, near the $24.30 area touched on Wednesday, which if cleared should lift the XAG/USD towards the $25.00 psychological mark with some intermediate hurdle near the $24.60-$24.70 zone.
On the flip side, the $24.40-$24.35 resistance-turned-support, also the daily low, should protect the immediate downside ahead of the $24.15 confluence support. The latter comprises the 100-period SMA on the 4-hour chart and an ascending trend line extending from November low, which, in turn, should act as a strong base for the XAG/USD.
A convincing breakthrough, leading to a subsequent slide below the $23.00 round figure, will negate the positive outlook and shift the bias in favour of bearish traders. The XAG/USD might then turn vulnerable and accelerate the fall towards testing the $22.00 round-figure mark with some intermediate support near the $22.55-$22.50 horizontal zone.
Silver 4-hour chart
Key levels to watch
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