Silver Price Analysis: XAG/USD keeps the red below $24.00, downside seems cushioned
- Silver comes under heavy selling pressure on Monday, though lacks follow-through.
- The technical setup still supports prospects for the emergence of some dip-buying.
- A convincing break below the $23.00 mark is needed to negate the positive outlook.
Silver kicks off the new week on a downbeat note and snaps a four-day winning streak to a nearly two-month high, around the $24.15 region touched on Friday. The white metal maintains its offered tone through the early part of the European session and trades around the $23.75 zone, down over 1.30% for the day.
From a technical perspective, the recent strong move up from the YTD low - levels just below the $20.00 psychological mark, stalls ahead of the $24.20-$24.25 static resistance, which should now act as a pivotal point. Some follow-through buying, leading to a subsequent strength beyond the multi-month peak, around the $24.60-$24.65 area touched in February, will b seen as a fresh trigger for bullish traders.
Given that oscillators on the daily chart have pulled back from overbought territory, the XAG/USD might then aim to reclaim the $25.00 psychological mark for the first time since April 2022. The upward trajectory could get extended further towards the next relevant hurdle near the $25.75-$25.80 region en route to the $26.00 round-figure mark and the April 2022 swing high, around the $26.20-$26.25 area.
On the flip side, the daily low, just ahead of the mid-$23.00s, now seems to protect the immediate downside. Any subsequent slide is more likely to attract fresh buyers near the $23.00 mark and remain limited near the $22.80-$22.75 region. That said, a convincing break below might prompt some technical selling and drag the XAG/USD towards the $22.25 intermediate support en route to the $22.00 round-figure mark.
Silver daily chart
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.
