Silver Price Analysis: XAG/USD bulls have the upper hand, move beyond $26.00 mark awaited

Silver regained positive traction on Monday and climbed to a fresh multi-week high.
Acceptance above the 61.8% Fibo. supports prospects for a further appreciating move.
Sustained weakness below the $25.00 mark is needed to negate the positive outlook.

Haresh Menghani FXStreet

Silver attracted fresh buying on Monday and built on its recent bounce from the vicinity of the very important 200-day SMA. This marked the seventh day of a positive move in the previous eight and pushed spot prices to a six-week high, around the $25.90-$25.95 region during the first half of the European session.

From a technical perspective, the XAG/USD now seems to have found acceptance above the 61.8% Fibonacci retracement level of the $26.95-$23.97 downfall. Moreover, technical indicators on the daily chart have been gaining positive traction and are still far from being in overbought territory, which, in turn, favours bulls.

That said, traders are likely to wait for some follow-through buying beyond the $26.00 round-figure mark before confirming a bullish breakout and positioning for additional near-term gains. The XAG/USD might aim to test an intermediate resistance near the $26.40 area en-route the YTD peak, closer to the $27.00 mark.

On the flip side, any meaningful slide now seems to find decent support near the 50% Fibo. level, around the $25.50-$25.45 region. This is followed by the previous session's swing low, around the $25.25 area, ahead of the 38.2% Fibo. level, around the $25.00 psychological mark, which should act as a pivotal point.

A convincing break below would prompt some technical selling and drag the XAG/USD back towards the 23.6% Fibo. level, around the $24.65 region. The next relevant support is pegged near the $24.30 region, below which the downfall could get extended towards a technically significant 200-DMA, around the $24.00 mark.

Silver 4-hour chart

Key levels to watch

XAU/USD

Overview
Today last price	1992.16
Today Daily Change	18.64
Today Daily Change %	0.94
Today daily open	1973.52

Trends
Daily SMA20	1940.52
Daily SMA50	1922.59
Daily SMA100	1862.62
Daily SMA200	1828.07

Levels
Previous Daily High	1980.42
Previous Daily Low	1960.63
Previous Weekly High	1981.59
Previous Weekly Low	1940.08
Previous Monthly High	2070.54
Previous Monthly Low	1890.21
Daily Fibonacci 38.2%	1968.19
Daily Fibonacci 61.8%	1972.86
Daily Pivot Point S1	1962.63
Daily Pivot Point S2	1951.73
Daily Pivot Point S3	1942.84
Daily Pivot Point R1	1982.42
Daily Pivot Point R2	1991.31
Daily Pivot Point R3	2002.21

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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