Silver Price Analysis: XAG/USD jumps to over one-week tops, closer to mid-$26.00s


  • Silver caught fresh bids on Wednesday and jumped to over one-week tops in the last hour.
  • A sustained move beyond the $26.25-30 region might have set the stage for further gains.
  • The $25.75-70 confluence support should now act as a strong near-term base for the metal.

Silver regained positive traction on Wednesday and shot to over one-week tops, closer to mid-$26.00s during the early North American session. This marked the third day of a positive move in the previous four and pushed the white metal decisively above the $26.25-30 supply zone.

The mentioned hurdle coincided with the 50% Fibonacci level of the $23.78-$28.75 move up and a sustained move beyond might have already set the stage for additional gains. The positive outlook is reinforced by the recent repeated rebound from the $25.75-70 confluence region.

The latter comprises the very important 200-day SMA and the 61.8% Fibo. level, which should continue to act as a key pivotal point for short-term traders. This is followed by June swing lows, around mid-$25.00s, which if broken will shift the bias in favour of bearish traders.

In the meantime, any meaningful pullback might continue to attract some buying near the $26.00-$25.90 region. This, in turn, should help limit the downside near the $25.75-70 confluence support, which should act as a strong base for the XAG/USD, at least in the near term.

Meanwhile, technical indicators on the daily chart have recovered from the negative territory but are yet to confirm a bullish bias. Hence, any subsequent move up is more likely to confront stiff resistance near the $26.75-80 region, or monthly swing highs touched last week.

This marks the 38.2% Fibo. level, which if cleared decisively will pave the way for an extension of the ongoing positive momentum. The XAG/USD might then aim to surpass the $27.00 mark and accelerate the positive momentum further towards the 23.6% Fibo. level, around mid-$27.00s.

Silver daily chart

fxsoriginal

Technical levels to watch

XAG/USD

Overview
Today last price 26.4
Today Daily Change 0.41
Today Daily Change % 1.58
Today daily open 25.99
 
Trends
Daily SMA20 26.09
Daily SMA50 27.04
Daily SMA100 26.43
Daily SMA200 25.83
 
Levels
Previous Daily High 26.35
Previous Daily Low 25.94
Previous Weekly High 26.78
Previous Weekly Low 25.76
Previous Monthly High 28.56
Previous Monthly Low 25.52
Daily Fibonacci 38.2% 26.1
Daily Fibonacci 61.8% 26.19
Daily Pivot Point S1 25.84
Daily Pivot Point S2 25.68
Daily Pivot Point S3 25.42
Daily Pivot Point R1 26.25
Daily Pivot Point R2 26.51
Daily Pivot Point R3 26.67

 

 

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