• Silver attracts fresh buying in the vicinity of support marked by the 200-SMA on the 4-hour chart.
  • The recent two-way price moves warrant some caution before placing aggressive directional bets.
  • Bulls might wait for a sustained move beyond the $24.00 mark before positioning for further gains.

Silver regains some positive traction on Thursday and for now, seems to have snapped a three-day losing streak to the weekly low touched the previous day. The white metal maintains its bid tone through the early European session and is currently placed near the daily high, around the $23.60-$23.65 region.

From a technical perspective, the overnight pullback from the vicinity of the weekly high stalls near the 200-period SMA on the 4-hour chart. The said support, currently around the $23.20 region, should now act as a pivotal point and help determine the next leg of a directional move. Given that the XAG/USD has been struggling to find acceptance above the $24.00 mark, a convincing break below will be seen as a fresh trigger for bearish traders.

That said, oscillators on the daily chart - though have been losing traction - are still holding in the positive territory. This makes it prudent to wait for some follow-through selling below the $23.00 round figure before positioning for a further near-term depreciating move. The XAG/USD might then accelerate the fall towards the $22.60-$22.55 region before eventually dropping to the next relevant support near the $22.10-$22.00 horizontal zone.

On the flip side, any further positive move might confront a stiff hurdle near the weekly top, around the $24.00-$24.10 region. A sustained strength beyond could lift the XAG/USD towards the multi-month high, around the $24.50-$24.55 region touched last week. Some follow-through buying should pave the way for a move towards reclaiming the $25.00 psychological mark.

Silver 4-hour chart

fxsoriginal

Key levels to watch

XAG/USD

Overview
Today last price 23.63
Today Daily Change 0.21
Today Daily Change % 0.90
Today daily open 23.42
 
Trends
Daily SMA20 23.66
Daily SMA50 22.56
Daily SMA100 20.85
Daily SMA200 21.09
 
Levels
Previous Daily High 24.04
Previous Daily Low 23.22
Previous Weekly High 24.55
Previous Weekly Low 23.12
Previous Monthly High 24.3
Previous Monthly Low 22.03
Daily Fibonacci 38.2% 23.53
Daily Fibonacci 61.8% 23.73
Daily Pivot Point S1 23.07
Daily Pivot Point S2 22.73
Daily Pivot Point S3 22.25
Daily Pivot Point R1 23.9
Daily Pivot Point R2 24.38
Daily Pivot Point R3 24.72

 

 

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