- Silver gains traction for the fourth straight day and climbs to over a two-week high.
- The technical set-up favours bullish traders and supports prospects for further gains.
- A sustained break below the $18.60 region is needed to negate the positive outlook.
Silver prolongs its recent recovery move from the lowest level since June 2020 touched earlier this month and gains traction for the fourth successive day on Monday. This also marks the sixth day of a positive move in the previous seven and lifts the white metal to over a two-week high, around the $19.30 area during the first half of the European session.
Last week's sustained breakout through the top end of a nearly one-month-old descending channel and a subsequent strength beyond the 100-period SMA on the 4-hour chart was seen as a key trigger for bulls. Furthermore, technical indicators on the daily chart have just started moving in the positive territory and remain supportive of the strong follow-through move up.
That said, RSI (14) on hourly charts is already flashing overbought conditions and might hold back traders from placing fresh bullish bets around the XAG/USD. Hence, it is prudent to wait for some near-term consolidation or a modest pullback before positioning for any further appreciating move. The bias, meanwhile, still seems tilted firmly in favour of bullish traders.
If silver can break above the 200-4hr SMA at $20.30 it is likely to meet tough resistence at the trendline drawn from April 2022 highs at $19.50-$19.60. A break above that, however, would be key to solidifying a new more bullish trend, allowing XAG/USD to accelerate the momentum towards reclaiming the $20.00 psychological mark and then the 50-day SMA at around $20.50.
On the flip side, the $19.00 round figure now seems to protect the immediate downside. Any further pullback might be seen as a buying opportunity and remain limited near the 100-period SMA on the 4-hour chart, around the $18.65-$18.60 region. This is followed by support near the $18.30 area. A convincing break below the latter will negate the near-term positive bias.
Silver 4-hour chart
-637985751324582175.png)
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 holds steady near 1.0650 amid risk reset
EUR/USD is holding onto its recovery mode near 1.0650 in European trading on Friday. A recovery in risk sentiment is helping the pair, as the safe-haven US Dollar pares gains. Earlier today, reports of an Israeli strike inside Iran spooked markets.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD is rebounding toward 1.2450 in early Europe on Friday, having tested 1.2400 after the UK Retail Sales volumes stagnated again in March, The pair recovers in tandem with risk sentiment, as traders take account of the likely Israel's missile strikes on Iran.
Gold: Middle East war fears spark fresh XAU/USD rally, will it sustain?
Gold price is trading close to $2,400 early Friday, reversing from a fresh five-day high reached at $2,418 earlier in the Asian session. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row.
Bitcoin Price Outlook: All eyes on BTC as CNN calls halving the ‘World Cup for Bitcoin’
Bitcoin price remains the focus of traders and investors ahead of the halving, which is an important event expected to kick off the next bull market. Amid conflicting forecasts from analysts, an international media site has lauded the halving and what it means for the industry.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.