Silver Price Analysis: XAG/USD bulls flirt with descending trend-line resistance

Haresh Menghani FXStreet

Silver trades with a positive bias for the third successive day on Thursday.
The technical setup warrants caution before positioning for further gains.
A convincing breakout through $23.00 is needed for bulls to seize control.

Silver (XAG/USD) attracts some buyers for the third successive day on Thursday and sticks to its modest intraday gains, near the $22.70-$22.75 region through the first half of the European session. The white metal, however, remains below the weekly top, around the $23.00 round figure touched the previous day.

The aforementioned handle represents a downward-sloping trend-line resistance extending from the December swing high and should act as a key pivotal point. A sustained strength beyond might trigger a short-covering rally and lift the XAG/USD to the $23.25-$23.30 intermediate resistance en route to the very important 200-day Simple Moving Average (SMA), currently around mid-$23.00s.

Some follow-through buying will suggest that the XAG/USD has bottomed out in the near term and pave the way for a move towards reclaiming the $24.00 round figure. The momentum could extend further towards the next relevant resistance near the $24.40-$24.50 area. That said, oscillators on the daily chart are yet to confirm a bullish bias and warrant some caution before positioning for further gains.

On the flip side, the $22.60-$22.55 zone now seems to protect the immediate downside, below which the XAG/USD could slide back to retesting over a two-month low, around the $21.95-$21.90 region touched on Monday. A convincing break below the latter will be seen as a fresh trigger for bearish traders and expose the $21.40-$21.35 support. The subsequent fall could drag the metal to the $21.00 round figure en route to the October monthly swing low, around the $20.70-$20.65 region.

Silver daily chart

Technical levels to watch

XAG/USD

Overview
Today last price	22.75
Today Daily Change	0.10
Today Daily Change %	0.44
Today daily open	22.65

Trends
Daily SMA20	23.03
Daily SMA50	23.65
Daily SMA100	23.15
Daily SMA200	23.52

Levels
Previous Daily High	22.96
Previous Daily Low	22.34
Previous Weekly High	23.33
Previous Weekly Low	22.42
Previous Monthly High	25.92
Previous Monthly Low	22.51
Daily Fibonacci 38.2%	22.72
Daily Fibonacci 61.8%	22.58
Daily Pivot Point S1	22.34
Daily Pivot Point S2	22.03
Daily Pivot Point S3	21.72
Daily Pivot Point R1	22.96
Daily Pivot Point R2	23.27
Daily Pivot Point R3	23.58

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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