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.

Haresh Menghani FXStreet

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

Key levels to watch

XAG/USD

Overview
Today last price	24.67
Today Daily Change	0.07
Today Daily Change %	0.28
Today daily open	24.6

Trends
Daily SMA20	24.96
Daily SMA50	24.41
Daily SMA100	23.68
Daily SMA200	23.9

Levels
Previous Daily High	24.66
Previous Daily Low	24.24
Previous Weekly High	25.6
Previous Weekly Low	23.97
Previous Monthly High	26.95
Previous Monthly Low	23.97
Daily Fibonacci 38.2%	24.5
Daily Fibonacci 61.8%	24.4
Daily Pivot Point S1	24.34
Daily Pivot Point S2	24.08
Daily Pivot Point S3	23.92
Daily Pivot Point R1	24.76
Daily Pivot Point R2	24.92
Daily Pivot Point R3	25.18

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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