- Silver continued with its struggle to break through a confluence barrier near the $24.30-$24.35 area.
- The technical set-up favours bullish traders and supports prospects for additional near-term gains.
- A convincing break below an upward sloping channel is needed to negate the constructive outlook.
Silver seesawed between tepid gains/minor losses through the mid-European session and was last seen trading in neutral territory, just above the $24.00 round-figure mark.
Looking at the broader picture, the recent positive move stalled near a confluence hurdle, around the $24.30-$24.35 region, or a near one-month high set on the previous day. The said barrier comprises a technically significant 200-day SMA and a downward sloping trend-line extending from July 2021.
Given the strong move up witnessed since the beginning of this month has been along an upward sloping channel, the bias seems tilted in favour of bullish traders. The positive outlook is reinforced by bullish oscillators on the daily chart, which are still far from being in the overbought zone.
The technical setup supports prospects for an eventual breakout through the aforementioned confluence resistance and a move towards testing the top end of the ascending channel. The latter, currently pegged near the $24.60-$24.70 area, coincides with the 2022 high and should act as a pivotal point.
Sustained strength beyond will be seen as a fresh trigger for bullish traders and pave the way for a further near-term appreciating move. The XAG/USD might then surpass the key $25.00 psychological mark and accelerate the momentum towards November 2021 swing high, around the $25.40 region.
On the flip side, the trend-channel support, around the $23.85-$23.80 region should protect the price from immediate downside. A subsequent decline below the $23.70 support might shift the near-term bias in favour of bearish traders and pave the way for a meaningful corrective slide for the XAG/USD.
The next relevant support is pegged near the $23.35-$23.30 region before the XAG/USD slides further to the $23.00 round-figure mark. The downward trajectory could further get extended and drag the white metal towards the $22.65 horizontal support.
Silver daily chart
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Technical levels to watch
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