Silver Price Analysis: XAG/USD consolidates around $25.00, bullish bias remains

Silver struggled to capitalize on the previous day's positive move and seesawed between tepid gains/minor losses heading into the North American session. The white metal was last seen trading flat, around the key $25.00 psychological mark.

Looking at the broader technical picture, the recent strong recovery from the YTD low touched in September has been along an ascending channel. This, along with last week's breakthrough the 100-day SMA/38.2% Fibo. confluence barrier favours bullish traders.

The positive bias is reinforced by the emergence of fresh buying on Wednesday and bullish oscillators on the daily chart, which are still away from being in the overbought territory. The set-up supports prospects for a further near-term appreciating move.

That said, the metal's inability to find acceptance above the 50% Fibonacci level of the $28.75-$21.42 slide warrants caution. Nevertheless, the stage seems all set for a move towards testing the next relevant hurdle near the $25.55-60 region.

Some follow-through buying has the potential to lift the XAG/USD towards the 61.8% Fibo. level, around the $26.00 round-figure mark. This coincides with the top boundary of the mentioned ascending channel and should cap any further gains. 

On the flip side, any pullback might still be seen as a buying opportunity and remain limited near the $24.50 resistance breakpoint. This is followed by the $24.10-$24.00 confluence (100-DMA and the 38.2% Fibo. level, ahead of the trend-channel support near the $23.85-80 region.

A convincing break below the latter will negate the constructive outlook, rather shift the bias back in favour of bearish traders and prompt aggressive technical selling. The XAG/USD might then accelerate the slide towards the $23.00 mark, or the 23.6% Fibo. level.

Silver daily chart

Technical levels to watch