Silver Price Analysis: XAG/USD bulls looking to seize control around mid-$26.00s


  • Silver gained traction through the first half of the trading action on Wednesday.
  • Bulls now await a sustained break through a one-week-old trading range hurdle.
  • Sustained weakness below the $25.85-80 support will negate the positive bias.

Silver built on the previous day's goodish rebound from the $25.85-80 support area and gained some follow-through traction on Thursday. The momentum pushed the XAG/USD to one-week tops, around mid-$26.00s during the first half of the trading action.

Bulls, however, struggled to capitalize on the move and the commodity, so far, held below the $26.60-65 strong horizontal resistance. The mentioned barrier also marks the top boundary of a one-week-old trading range and should now act as a key pivotal point.

Meanwhile, technical indicators on the daily chart maintained their bullish bias and have been scaling higher on hourly charts. The set-up supports prospects for an eventual break to the upside and an extension of the recent strong recovery from YTD lows.

That said, it will still be prudent to wait for a sustained break through the trading range hurdle before positioning for any further appreciating move. The subsequent positive move should assist the XAG/USD to aim back to reclaim the $27.00 round figure.

The upward trajectory could get extended to the $27.40 region, a resistance marked by an ascending trend-line extending from late March. Some follow-through buying will negate any negative bias, instead will be seen as a fresh trigger for bullish traders.

On the flip side, the $26.00 mark, followed by the trading range support near the $25.85-80 support now seems to protect the immediate downside. The latter also coincides with the 100-period EMA on the 4-hourly chart, which if broken might prompt aggressive technical selling.

The XAG/USD might then turn vulnerable and fall to the key $25.00 psychological mark en-route the $24.65-60 horizontal support. Bearish traders might then aim to challenge the $24.00 mark ahead of YTD lows, around the $23.80-75 region touched on March 31.

XAG/USD 4-hour chart

fxsoriginal

Technical levels to watch

XAG/USD

Overview
Today last price 26.4
Today Daily Change 0.21
Today Daily Change % 0.80
Today daily open 26.19
 
Trends
Daily SMA20 25.59
Daily SMA50 25.91
Daily SMA100 25.97
Daily SMA200 25.52
 
Levels
Previous Daily High 26.3
Previous Daily Low 25.84
Previous Weekly High 26.64
Previous Weekly Low 25.64
Previous Monthly High 27.08
Previous Monthly Low 23.78
Daily Fibonacci 38.2% 26.01
Daily Fibonacci 61.8% 26.12
Daily Pivot Point S1 25.91
Daily Pivot Point S2 25.64
Daily Pivot Point S3 25.45
Daily Pivot Point R1 26.38
Daily Pivot Point R2 26.58
Daily Pivot Point R3 26.85

 

 

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