Silver Price Analysis: XAG/USD bulls looking to seize control, await a move beyond $23.00

Silver gained strong positive traction and shot to the $23.00 mark, or a multi-day high on Monday.
Technical indicators on the daily chart warrant some caution before placing aggressive bullish bets.
A convincing break through the $23.40-$23.45 area is needed to support prospects for further gains.

Haresh Menghani FXStreet

Silver built on Friday's rebound from the post-NFP low to the $22.00 neighbourhood, or a near one-month low, and gained strong positive traction on the first day of a new week. The intraday positive move pushed spot prices back closer to the $23.00 round-figure mark during the early North American session.

From a technical perspective, any subsequent move up beyond the mentioned handle might confront some resistance near the 100-day SMA, currently around the $23.20 area. This is followed by the $23.40-$23.45 horizontal barrier, which should act as a pivotal point and help determine the near-term trend for the XAG/USD.

Technical indicators on the daily chart – though have been recovering from lower levels – are yet to confirm a bullish bias for the XAG/USD. This makes it prudent to wait for a strong follow-through buying before confirming that the recent sharp rejection slide from the very important 200-day SMA has run its course.

A convincing breakthrough the said barriers will negate any bearish bias and trigger a fresh bout of a short-covering move. This should allow the XAG/USD to surpass the $24.00 round-figure mark and climb further towards challenging the YTD high, around the $24.70 region touched on January 20.

On the flip side, the $22.65 area now seems to protect the immediate downside ahead of the $22.40 region, which if broken would expose the $22.00 round figure. Sustained weakness below should pave the way for a further decline and drag the XAG/USD towards challenging the double-bottom support, around the $21.40 zone.

Silver daily chart

Technical levels to watch

XAG/USD

Overview
Today last price	22.9
Today Daily Change	0.39
Today Daily Change %	1.73
Today daily open	22.51

Trends
Daily SMA20	23.15
Daily SMA50	22.8
Daily SMA100	23.18
Daily SMA200	24.46

Levels
Previous Daily High	22.67
Previous Daily Low	22.12
Previous Weekly High	23.05
Previous Weekly Low	22.01
Previous Monthly High	24.7
Previous Monthly Low	21.96
Daily Fibonacci 38.2%	22.46
Daily Fibonacci 61.8%	22.33
Daily Pivot Point S1	22.19
Daily Pivot Point S2	21.88
Daily Pivot Point S3	21.64
Daily Pivot Point R1	22.75
Daily Pivot Point R2	22.99
Daily Pivot Point R3	23.3

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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