Silver Price Analysis: XAG/USD bulls have the upper hand near $26.00, 13-month top

Silver consolidates its recent gains to a 13-month high touched earlier this Friday.
The setup favours bulls and supports prospects for a further appreciating move.
A convincing break below $24.50-40 support is needed to negate the positive bias.

Haresh Menghani FXStreet

Silver enters a bullish consolidation phase and oscillates in a narrow trading band around the $26.00 round-figure mark, just below its highest level since April 2022 touched earlier this Friday.

From a technical perspective, the recent repeated rebounds from the $24.50-$24.40 strong horizontal resistance breakpoint, now turned support, and the subsequent move up favours bullish traders. That said, the Relative Strength Index (RSI) on the daily chart is already flashing overbought conditions, making it prudent to wait for some near-term consolidation or a modest pullback before positioning for any further appreciating move.

Nevertheless, the XAG/USD seems poised to prolong its upward trajectory witnessed over the past three sessions and surpass an intermediate hurdle near the $26.25-$26.30 region. The momentum could eventually get extended towards testing the March 2022 swing high, just ahead of the $27.00 round-figure mark.

On the flip side, any meaningful pullback now seems to find decent support near the $25.65-$25.60 region. Any subsequent fall towards the $25.00 psychological mark could still be seen as a buying opportunity and remain limited near the $24.50-$24.40 resistance-turned-support. A convincing break below the latter will negate the positive outlook and make the XAG/USD vulnerable to weaken further below the $24.00 mark.

The next relevant support is pegged near the $23.35-$23.30 confluence, comprising the 50-day and the 100-day Simple Moving Averages (SMAs), below which the XAG/USD could slide to the $23.00 round-figure mark.

Silver daily chart

Key levels to watch

XAG/USD

Overview
Today last price	26
Today Daily Change	-0.04
Today Daily Change %	-0.15
Today daily open	26.04

Trends
Daily SMA20	25.23
Daily SMA50	23.37
Daily SMA100	23.3
Daily SMA200	21.7

Levels
Previous Daily High	26.06
Previous Daily Low	25.44
Previous Weekly High	25.36
Previous Weekly Low	24.49
Previous Monthly High	26.09
Previous Monthly Low	23.57
Daily Fibonacci 38.2%	25.83
Daily Fibonacci 61.8%	25.68
Daily Pivot Point S1	25.64
Daily Pivot Point S2	25.23
Daily Pivot Point S3	25.01
Daily Pivot Point R1	26.26
Daily Pivot Point R2	26.47
Daily Pivot Point R3	26.88

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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