• Silver attracts some dip-buying on Wednesday and spikes to a multi-day high.
  • The move confirms a breakout through a one-week-old descending trend line.
  • A sustained break below the $21.00 mark is needed to negate the positive bias.

Silver reverses an intraday dip to sub-$21.00 levels and surges to a four-day high during the early European session on Wednesday. The white metal is currently trading around the $21.25-$21.30 region, up over 0.80% for the day, with bulls now awaiting a sustained move beyond the 200-hour SMA before placing fresh bets.

From a technical perspective, the momentum confirms a breakout through a one-week-old descending trend-line resistance. Meanwhile, oscillators on the daily chart are holding in the bullish territory and have just started gaining positive traction on hourly charts. This, in turn, supports prospects for an extension of the recovery from a nearly two-week low, around the $20.60-$20.55 area touched on Monday.

Some follow-through buying beyond the $21.35 region (200-hour SMA) will reaffirm the constructive outlook and lift the XAG/USD towards the $21.75-$21.80 resistance zone. This is followed by the $22.00 mark and over a five-month high, around the $22.25 area, which if cleared will set the stage for a move towards the $22.50-$22.60 supply zone. Spot prices could eventually reclaim the $23.00 round figure.

On the flip side, the $21.00-$20.90 area might continue to protect the immediate downside. The said support represents an ascending trend-line extending from the weekly low touched on Monday. A convincing break below will negate the positive set-up and shift the near-term bias in favour of bearish traders. The XAG/USD might then slide to the $20.60-$20.55 area (weekly low) and the $20.00 psychological mark.

Silver 1-hour chart

fxsoriginal

Key levels to watch

XAG/USD

Overview
Today last price 21.25
Today Daily Change 0.16
Today Daily Change % 0.76
Today daily open 21.09
 
Trends
Daily SMA20 20.61
Daily SMA50 19.83
Daily SMA100 19.54
Daily SMA200 21.4
 
Levels
Previous Daily High 21.34
Previous Daily Low 20.83
Previous Weekly High 22.25
Previous Weekly Low 20.75
Previous Monthly High 21.24
Previous Monthly Low 18.09
Daily Fibonacci 38.2% 21.14
Daily Fibonacci 61.8% 21.02
Daily Pivot Point S1 20.83
Daily Pivot Point S2 20.58
Daily Pivot Point S3 20.32
Daily Pivot Point R1 21.34
Daily Pivot Point R2 21.6
Daily Pivot Point R3 21.85

 

 

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