Silver Price Analysis: XAG/USD sits near multi-week tops, just below mid-$24.00s
|- Silver caught some fresh bids on Friday and moved back closer to multi-week tops.
- The set-up remains tilted in favour of bulls and supports prospects for further gains.
- Any meaningful slide below the $24.00 mark could be seen as a buying opportunity.
Silver regained positive traction on the last day of the week and inched back closer to six-week tops during the mid-European session. The white metal was last seen trading just below the mid-$24.00s, up around 0.70% for the day.
From a technical perspective, the XAG/USD has been consolidating in a range around the 38.2% Fibonacci level of the $28.75-$21.42 downfall. Given the recent breakout through a downward sloping trend-line extending from July swing highs and an inverted head and shoulders neckline, the bias remains tilted in favour of bullish traders.
The constructive setup is reinforced by the fact that technical indicators on the daily chart have been gaining positive traction and are still far from being in the overstretched zone. Moreover, RSI (14) on the 4-hour chart has eased from the overbought territory and supports prospects for a further near-term appreciating move.
Hence, a subsequent move towards testing September monthly swing highs, around the $24.80-85 region, remains a distinct possibility. Bulls might eventually aim to reclaim the key $25.00 psychological mark, which coincides with the 50% Fibo. level.
On the flip side, the overnight swing lows, around the $24.00 mark now seems to protect the immediate downside. Any subsequent decline could be seen as a buying opportunity near the $23.75-70 region. This, in turn, should help limit the corrective pullback near the mentioned trend-line support breakpoint, around the $23.50-45 region.
Silver daily chart
Technical 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.