- Silver regains positive traction on Friday, though remains in a multi-day-old trading range.
- Acceptance above the $21.65-$21.70 confluence supports prospects for additional gains.
- A convincing break below the $21.00 mark is needed to negate the near-term positive bias.
Silver attracts fresh buying on the last day of the week and maintains its bid tone through the first half of the European session, though struggles to capitalize on the move beyond the $22.00 round-figure mark.
From a technical perspective, the two-way price moves in a familiar range witnessed over the past few sessions constitute the formation of a rectangle. Against the backdrop of the recent strong recovery from sub-$20.00 levels, or a four-month low touched last week, this might still be categorized as a bullish consolidation phase. Furthermore, acceptance above the $21.65-$21.70 confluence adds credence to the positive outlook and supports prospects for a further near-term appreciating move for the XAG/USD.
The aforementioned area comprises the 200-period Simple Moving Average (SMA) on the 4-hour chart and the 38.2% Fibonacci retracement level of the downfall from the $24.65 area, or a multi-month peak touched in February. This should now act as a strong base for the XAG/USD and help limit the immediate downside. That said, some follow-through selling, leading to a break below the trading range support near the mid-$21.00s, might negate the positive outlook and pave the way for a slide towards the $21.00 mark.
The latter coincides with the 23.6% Fibo. level, which if broken decisively will shift the near-term bias back in favour of bearish traders. The XAG/USD might then turn vulnerable to accelerate the slide towards the $20.55-$20.50 intermediate support en route to the $20.00 psychological mark. The downward trajectory could get extended further and drag spot prices to the next relevant support near the $19.60 region. The white metal could eventually drop to the $19.00 mark for the first time since early November 2022.
On the flip side, momentum back above the $22.00 round figure might confront stiff resistance near the $22.25-$22.35 region, marking the 50% Fibo. level and the overnight swing high. The subsequent move up could push the XAG/USD beyond the $22.55-$22.60 supply zone, towards testing the 61.8% Fibo. level, just ahead of the $23.00 mark. A sustained strength beyond the latter will be seen as a fresh trigger for bullish traders and should pave the way for a meaningful upside for the white metal in the near term.
Silver 4-hour chart
Key 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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD drops below 1.0850 as DXY extends gains
EUR/USD pulled back below 1.0850 during the American session and turned negative for the day, moving away from the three-day high it hit earlier at 1.0871. The US Dollar gained momentum in a relatively quiet session.
GBP/USD retreats further from seven-week highs toward 1.2300
GBP/USD dropped to 1.2300 after the beginning of the American session amid a stronger US Dollar. Earlier on Wednesday reached the highest level since February 2 at 1.2360. The pair holds an upward bias but bulls need above 1.2300.
Gold: XAU/USD fails to retake $1,970 Premium
Gold reversed at $1,971/oz and retreated finding support above $1,960. Higher US yields make it difficult for XAU/USD to gather strength. Also, the DXY is trading at daily highs near 102.80, adding weight to gold.
XRP Price Prediction: Whales could be expecting a 20% rally
XRP price has been rising impressively, drawing investors towards the crypto asset. However, these traders might want to brace for a potential pullback following the recent rallies despite the Ripple community preparing for a win against the SEC.
Athleisure does it again as earnings blowout send LULU up 17%
Lululemon Athletica (LULU), the only heir to Nike's (NKE) success in the athletic wear realm, reported earnings late Tuesday that show why it has remained a must-own stock despite the market tanking over the past year.