Silver Price Analysis: XAG/USD consolidates near $23.65 area, below descending trend-line hurdle
- Silver oscillates in a narrow trading band for the second successive day on Friday.
- Bullish oscillators on the daily chart support prospects for some short-term gains.
- A breakout through an descending trend line is needed to confirm the bullish bias.
Silver (XAG/USD) continues with its struggle to gain any meaningful traction and seesaws between tepid gains/minor losses for the second successive day on Friday. The white metal currently trades around the $23.65 region, nearly unchanged for the day and below a downward-sloping trend line resistance extending from the May swing high.
The aforementioned barrier, currently pegged near the $24.00 round figure, should act as a key pivotal point and help determine the next leg of a directional move for the XAG/USD. Against the backdrop of the recent sustained strength beyond the 200-day Simple Moving Average (SMA), positive oscillators on the daily chart support prospects for an eventual breakout through the said resistance.
A sustained strength beyond will be seen as a fresh trigger for bulls. The subsequent move-up should allow the XAG/USD to surpass the $24.20-$24.25 intermediate hurdle and make a fresh attempt to conquer the $25.00 psychological mark. Some follow-through buying beyond the $25.15-$25.20 region will set the stage for a move towards reclaiming the $26.00 mark for the first time since May.
On the flip side, the 200-day SMA, currently around the $23.35 region, might continue to protect the immediate downside. Any further decline might still be seen as a buying opportunity and remain limited near the $23.00 mark. A convincing break below the latter, however, might prompt aggressive technical selling and drag the XAG/USD towards the $22.35-$22.30 zone en route to the $22.00 mark.
Silver daily chart
technical levels to watch
(This story was corrected on November 24 at 09:50 GMT to say, in the third bullet point, that a breakout in the descending trend line is needed, not ascending trend line.)
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
