Silver Price Analysis: XAG/USD climbs to mid-$19.00s, eyes descending trend-line hurdle
- Silver regains positive traction on Wednesday and reverses a major part of the overnight losses.
- The technical set-up supports prospects for a breakout through a descending trend-line resistance.
- Sustained weakness below the $18.80-$18.75 region is needed to negate the constructive outlook.
Silver attracts fresh buying on Wednesday and continues gaining traction through the first half of the European session. The white metal reverses the previous day's modest losses and is currently trading near the daily peak, around mid-$19.00s.
Looking at the broader picture, the XAG/USD has been oscillating in a familiar range over the past one-and-half week or so and remains below a downward sloping trend-line extending from the May swing high. The said barrier, currently around the $19.75 region, should act as a key pivotal point and help determine the next leg of a directional move for the commodity.
Meanwhile, positive technical indicators on the daily chart support prospects for an eventual breakout through the aforementioned hurdle. The XAG/USD might then surpass the $20.00 psychological mark and test the 100-day SMA, around the $20.25 region. The momentum could further get extended towards the $20.50 intermediate resistance en route to the $21.00 mark.
On the flip side, any meaningful pullback might continue to find decent support near the $19.00 mark ahead of the $18.80-$18.75 region. A convincing break below will shift the near-term bias back in favour of bearish traders and make the XAG/USD vulnerable to accelerating the fall to the $18.45-$18.40 support. Spot prices could eventually drop to the $18.00 round figure.
Silver daily chart
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Key levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
