Silver Price Analysis: XAG/USD flirts with ascending channel resistance, near $24.70 area
- Silver built on its steady move up for the third successive day on Friday.
- A two-week-old descending trend-line resistance could cap the upside.
- Sustained weakness below $24.00 would set the stage for further losses.
Silver edged higher for the third straight day on Friday and climbed to the $24.65-$24.70 region during the early European session. Bulls might now be looking to build on the momentum beyond the 200-hour SMA, though any meaningful upside seems elusive. The XAG/USD was last seen flirting with the top boundary of a three-day-old ascending channel. This is followed by a downward sloping trend-line extending from the high touched on March 31, around the $24.80 region, which should act as a strong barrier.
Technical indicators on hourly charts have been gaining positive traction and have also recovered from the negative territory on the daily chart. Hence, a convincing break through the aforementioned confluence hurdle would set the stage for further gains. The XAG/USD might then aim to surpass the $25.00 psychological mark and accelerate the momentum towards the $25.35-$25.40 resistance zone. The upward trajectory could eventually lift spot prices to the $25.75-$25.80 area en-route the $26.00 round-figure mark.
On the flip side, the $24.50 area should now protect the immediate downside ahead of the trend-channel support, currently around the $24.30 region. This is closely followed by the weekly low, around the $24.15-$24.10 region, and the $24.00 mark. The latter coincides with the very important 200-day SMA, which if broken would be seen as a fresh trigger for bearish traders. The XAG/USD would then accelerate the fall towards the $23.60 intermediate support before dropping further to the $23.20-$23.15 zone.
Silver 1-hour chart
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Key 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.
