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

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

Technical levels to watch