Silver Price Analysis: XAG/USD consolidates above mid-$25.00s, bullish potential intact

Silver oscillates in a narrow trading band through the first half of trading on Monday.
The technical setup favours bullish traders and supports prospects for further gains.
A convincing break below the $24.50-40 area is needed to negate the positive bias.

Haresh Menghani FXStreet

Silver fails to capitalize on Friday's bounce from the 200-hour Simple Moving Average (SMA) and oscillates in a narrow trading band through the early European session on the first day of a new week. The white metal currently trades around the $25.65-$2,5.70 region, nearly unchanged for the day, though the technical setup favours bullish traders.

The recently repeated rebounds from the $24.50-$24.40 strong horizontal resistance breakpoint, now turned support, and the emergence of some dip-buying on Friday validates the near-term positive outlook. Moreover, the Relative Strength Index (RSI) on the daily chart has eased from the overbought territory and supports prospects for a further appreciating move.

That said, the XAG/USD has been struggling to build on its momentum beyond the $26.00 mark, making it prudent to wait for a sustained strength beyond the said handle before placing fresh bullish bets. The commodity might then surpass an intermediate barrier near the $26.25-$26.30 and aim to test the March 2022 swing high, just ahead of the $27.00 round figure.

On the flip side, Friday's swing low, around the $25.15 region now seems to protect the immediate downside. This is closely followed by the $25.00 psychological mark, below which the XAG/USD could extend the corrective decline towards testing the $24.50-$24.40 resistance-turned-support. A convincing break below the latter could negate the positive outlook.

The XAG/USD might then turn vulnerable to weaken further below the $24.00 mark and drop to the next relevant support near the $23.50-$23.30 confluence. The latter comprises the 50-day and the 100-day SMAs and is followed by support near the $23.00 round-figure mark.

Silver 1-hour chart

Key levels to watch

XAG/USD

Overview
Today last price	25.67
Today Daily Change	0.01
Today Daily Change %	0.04
Today daily open	25.66

Trends
Daily SMA20	25.26
Daily SMA50	23.46
Daily SMA100	23.32
Daily SMA200	21.73

Levels
Previous Daily High	26.14
Previous Daily Low	25.17
Previous Weekly High	26.14
Previous Weekly Low	24.58
Previous Monthly High	26.09
Previous Monthly Low	23.57
Daily Fibonacci 38.2%	25.54
Daily Fibonacci 61.8%	25.77
Daily Pivot Point S1	25.17
Daily Pivot Point S2	24.69
Daily Pivot Point S3	24.2
Daily Pivot Point R1	26.14
Daily Pivot Point R2	26.62
Daily Pivot Point R3	27.11

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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