Silver Price Analysis: XAG/USD bulls have the upper hand above 200-hour SMA
- Silver seems to struggle to capitalize on its modest intraday uptick on Wednesday.
- Acceptance above the 200-hour SMA supports prospects for some meaningful gains.
- A sustained break below the $21.00 mark is needed to negate the positive outlook.
Silver edges higher on Wednesday, albeit lacks bullish conviction and remains below the overnight swing high through the early European session. The white metal is currently placed around the $21.30-$21.35 area and so far, has managed to hold above the 200-hour SMA.
From a technical perspective, the overnight goodish intraday rally from static support just below the $21.00 mark favours bullish traders. Furthermore, positive oscillators on hourly/daily charts support prospects for some meaningful intraday upside for the XAG/USD.
That said, any subsequent move up might continue to confront stiff resistance near the $21.60-$21.70 supply zone. Some follow-through buying should allow the XAG/USD to reclaim the $22.00 round-figure mark and retest a five-month high, around the $22.25 zone.
On the flip side, the 200-hour SMA, currently around the $21.15 area, is likely to protect the immediate downside ahead of the $21.00-$20.90 strong support. A convincing break below the latter could negate the positive outlook and shift the bias in favour of bearish traders.
The XAG/USD might then accelerate the downfall to the $20.60-$20.55 area before eventually dropping to challenge the $20.00 psychological mark. The downward trajectory could further get extended towards a strong horizontal resistance breakpoint, around the $19.60 region.
Silver 1-hour chart
Key levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
