Silver Price Analysis: XAG/USD consolidates near two-week high, around 100-DMA/$23.25 area
- Silver now seems to have entered a bullish consolidation phase near a two-week high.
- Bulls might wait for sustained move beyond the $23.45 area before placing fresh bets.
- Weakness below the $23.00 mark could attract some dip-buying and remain limited.
Silver was seen oscillating in a range around the $23.15-$23.30 region through the first half of the European session and consolidated its recent gains to a two-week high.
From a technical perspective, the XAG/USD, so far, has struggled to gain momentum beyond the 100-day SMA resistance. This is closely followed by the $23.40-$23.45 horizontal resistance, which should now act as a pivotal point for short-term traders.
Oscillators on the daily chart have just started moving into the positive territory, though lacked strong momentum. Hence, it will be prudent to wait for sustained strength beyond the aforementioned barrier before positioning for any further gains.
The XAG/USD could then accelerate the positive move and aim towards reclaiming the $24.00 round-figure mark. The momentum could further get extended and allow bulls to challenge the YTD high, around the $24.70 area touched on January 20.
On the flip side, the $23.00 mark now seems to protect the immediate downside ahead of the overnight swing low, around the $22.75 region and mid-$22.00s. Some follow-through selling would negate the positive bias and make the XAG/USD vulnerable.
The next relevant support is pegged near the $22.00 mark, which if broken decisively will shift the bias firmly in favour of bearish traders. This, in turn, should pave the way for a slide towards the double-bottom support, around the $21.40 zone.
Silver daily chart
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Levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
