Silver Price Analysis: XAG/USD bulls eyeing a move towards $23.45 confluence hurdle


  • Silver showed some resilience below the $23.00 mark and gained some positive traction on Monday.
  • Bearish oscillators on 4-hour/daily charts warrant some caution before positioning for strong gains.

Silver gained some positive traction on the first day of a new week and staged a goodish rebound from sub-$23.00 levels, or near two-week lows touched on Friday. The commodity maintained its bid tone through the early European session and was last seen trading near daily tops, around the $23.25-30 region, snapping four consecutive days of the losing streak.

Looking at the broader picture, the recent decline from the vicinity of the $24.00 mark stalled near support marked by the lower boundary of a one-week-old descending channel. The subsequent positive move supports prospects for additional intraday gains amid some follow-through US dollar profit-taking, which tends to benefit the dollar-denominated XAG/USD.

That said, technical indicators on the 4-hour chart – though have been recovering from the negative territory – are yet to confirm the bullish bias. Moreover, oscillators on the daily chart are still holding deep in the bearish territory. Hence, any further positive move is more likely to remain capped near the channel resistance, around the $23.45 region.

The latter coincides with 100-hour SMA. A sustained strength beyond the mentioned confluence hurdle might be seen as a fresh trigger for bullish traders and push the XAG/USD back towards the $23.90-$24.00 supply zone. Some follow-through buying will set the stage for some meaningful recovery from the recent swing lows, around the $22.20 region.

On the flip side, the $23.00 round-figure mark now seems to protect the immediate downside ahead of the trend-channel support, currently near the $22.80 region. A convincing break below has the potential to drag the XAG/USD further below intermediate support near mid-$22.00, towards challenging YTD lows touched earlier this month.

Silver 1-hour chart

fxsoriginal

Technical levels to watch

XAG/USD

Overview
Today last price 23.27
Today Daily Change 0.25
Today Daily Change % 1.09
Today daily open 23.02
 
Trends
Daily SMA20 24.31
Daily SMA50 25.36
Daily SMA100 26.1
Daily SMA200 25.88
 
Levels
Previous Daily High 23.33
Previous Daily Low 22.88
Previous Weekly High 23.96
Previous Weekly Low 22.88
Previous Monthly High 26.78
Previous Monthly Low 24.5
Daily Fibonacci 38.2% 23.05
Daily Fibonacci 61.8% 23.16
Daily Pivot Point S1 22.82
Daily Pivot Point S2 22.63
Daily Pivot Point S3 22.38
Daily Pivot Point R1 23.27
Daily Pivot Point R2 23.52
Daily Pivot Point R3 23.72

 

 

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