Silver Price Analysis: XAG/USD hits two-week tops, challenges $26.30 supply zone

Silver gained some follow-through traction for the second consecutive session on Thursday.
A sustained move beyond the $26.30 supply zone should pave the way for additional gains.
Mixed technical indicators on the daily chart warrants caution for aggressive bullish traders.

Haresh Menghani FXStreet

Silver built on the previous day's positive move and gained some follow-through traction for the second consecutive session on Thursday. The momentum pushed the XAG/USD to near two-week tops, back closer to the $26.25-30 supply zone.

This comes after the XAG/USD showed resilience below the $25.70 confluence support, comprising of the very important 200-day SMA and the 61.8% Fibonacci level of the $23.78-$28.75 move up. Hence, some follow-through buying will be seen as a fresh trigger for bullish traders and pave the way for additional gains.

Meanwhile, technical indicators on the daily chart – though have been recovering from the negative territory – are yet to confirm a bullish bias. This warrants some caution before positioning for a runaway rally as investors might refrain from placing any aggressive bets ahead of Friday's US monthly jobs report.

That said, a sustained move beyond the mentioned barrier has the potential to lift the XAG/USD further beyond the $26.55-60 immediate hurdle, towards the 38.2% Fibo., around the $26.85 region. This is followed by the $27.00 mark, above which the next relevant hurdle is pegged near mid-$27.00s, or the 23.6% Fibo. level.

On the flip side, any meaningful pullback below the $26.00 mark might continue to find decent support near the $25.70 region ahead of weekly swing lows, around mid-$25.00s. A convincing break below might turn the XAG/USD vulnerable and pave the way for a fall towards challenging the key $25.00 psychological mark.

Silver daily chart

Technical levels to watch

XAG/USD

Overview
Today last price	26.3
Today Daily Change	0.17
Today Daily Change %	0.65
Today daily open	26.13

Trends
Daily SMA20	26.81
Daily SMA50	27.06
Daily SMA100	26.54
Daily SMA200	25.71

Levels
Previous Daily High	26.15
Previous Daily Low	25.7
Previous Weekly High	26.3
Previous Weekly Low	25.55
Previous Monthly High	28.56
Previous Monthly Low	25.52
Daily Fibonacci 38.2%	25.98
Daily Fibonacci 61.8%	25.87
Daily Pivot Point S1	25.84
Daily Pivot Point S2	25.55
Daily Pivot Point S3	25.4
Daily Pivot Point R1	26.28
Daily Pivot Point R2	26.43
Daily Pivot Point R3	26.72

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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