- Silver finds support near $22.00 and stalls this week’s pullback from a multi-month high.
- The technical set-up favours bullish traders and supports prospects for additional gains.
- A sustained break below $21.00 will negate the near-term positive bias for the XAG/USD.
Silver attracts fresh buyers on Wednesday and steadily climbs back closer to the mid-$22.00s during the mid-European session.
Looking at the broader picture, this week's sharp retracement slide from the highest level since late April stalls near the $22.00 round-figure mark. The said handle coincides with the 200-hour SMA and should act as a pivotal point, which if broken decisively will set the stage for a deeper corrective decline.
The XAG/USD might then accelerate the fall towards the $21.40 support zone. This is closely followed by the very important 200-day SMA, around the $21.30-$21.25 region, and the $21.00 mark. The latter should act as a strong base for spot prices, which if broken decisively will negate the near-term positive outlook.
That said, oscillators on the daily chart are holding comfortably in the bullish territory and have again started gaining positive traction on hourly charts. This, in turn, supports prospects for the emergence of some dip-buying at lower levels, which should help limit any meaningful near-term fall for the XAG/USD.
Meanwhile, any subsequent move up beyond the overnight swing high, around the $22.60 area, is likely to confront stiff resistance near the $23.00 mark. A sustained strength beyond should lift the XAG/USD to the multi-month peak, around the $23.50-$23.55 zone. Some follow-through buying should pave the way for additional gains.
Bulls might then aim to reclaim the $24.00 round-figure mark for the first time since April. The positive momentum could get extended and lift the XAG/USD further towards the next relevant hurdle around the $24.25-$24.30 zone en route to the $24.55-$24.60 region.
Silver 1-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
USD/JPY pops and drops on BoJ's expected hold
USD/JPY reverses a knee-jerk spike to 142.80 and returns to the red below 142.50 after the Bank of Japan announced on Friday that it maintained the short-term rate target in the range of 0.15%-0.25%, as widely expected. Governor Ueda's press conference is next in focus.
AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood
AUD/USD attacks 0.6800 in Friday's Asian trading, extending its gradual retreat after the PBOC unexpectedly left mortgage lending rates unchanged in September. A cautious market mood also adds to the weight on the Aussie. Fedspeak eyed.
Gold consolidates near record high, bullish potential seems intact
Gold price regained positive traction on Thursday and rallied back closer to the all-time peak touched the previous day in reaction to the Federal Reserve's decision to start the policy easing cycle with an oversized rate cut.
Ethereum rallies over 6% following decision to split Pectra upgrade into two phases
In its Consensus Layer Call on Thursday, Ethereum developers decided to split the upcoming Pectra upgrade into two batches. The decision follows concerns about potential risks in shipping the previously approved series of Ethereum improvement proposals.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.