Silver Price Analysis: XAG/USD challenges 200-period SMA/50% Fibo. confluence hurdle

  • Silver attracted some dip-buying on Thursday and turned positive for the second straight day.
  • The set-up seems tilted in favour of bullish traders and supports prospects for additional gains.
  • A sustained break below the $22.25-20 support is needed to negate the constructive outlook.

Silver reversed an intraday dip to the $22.90 area and inched back closer to near one-month tops touched in the previous day. The white metal was last seen trading near the $23.20 region, up around 0.40% for the day.

The mentioned are marks a confluence hurdle comprising of 200-period SMA on the 4-hour chart and the 50% Fibonacci level of the $24.87-$21.42 downfall. A sustained move beyond will be seen as a fresh trigger for bullish traders and set the stage for a further near-term appreciating move.

Meanwhile, technical indicators on hourly charts maintained their bullish bias and have just started gaining positive traction on the daily chart. The set-up seems tilted firmly in favour of bullish traders and supports prospects for an eventual break through the mentioned confluence barrier.

The XAG/USD might then accelerate the momentum towards the 61.8% Fibo. level, around the $23.55-60 area, before aiming to reclaim the $24.00 mark. Some follow-through buying beyond the $24.25-30 region would expose September monthly swing highs resistance near the $24.75-80 zone.

On the flip side, any meaningful slide below the $23.00 round figure might be seen as a buying opportunity and remain limited near the 38.2% Fibo. level, around the $22.75 region. That said, sustained weakness below might accelerate the slide back towards the $22.25-20 static support.

The latter coincides with the 23.6% Fibo. level, which if broken decisively will shift the bias back in favour of bearish traders. The XAG/USD might then turn vulnerable to break below the $22.00 mark and slide further towards challenging YTD lows, around the $21.45-40 region.

Silver 4-hour chart


Technical levels to watch


Today last price 23.16
Today Daily Change 0.06
Today Daily Change % 0.26
Today daily open 23.1
Daily SMA20 22.52
Daily SMA50 23.33
Daily SMA100 24.84
Daily SMA200 25.57
Previous Daily High 23.25
Previous Daily Low 22.47
Previous Weekly High 23.19
Previous Weekly Low 22.21
Previous Monthly High 24.87
Previous Monthly Low 21.42
Daily Fibonacci 38.2% 22.95
Daily Fibonacci 61.8% 22.76
Daily Pivot Point S1 22.63
Daily Pivot Point S2 22.16
Daily Pivot Point S3 21.85
Daily Pivot Point R1 23.41
Daily Pivot Point R2 23.72
Daily Pivot Point R3 24.19



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