Silver Price Analysis: XAG/USD looks to build on intraday positive move beyond $24.00 mark

Silver regains positive traction and reverses a part of Friday’s pullback from over a one-week top.
The technical setup remains tilted in favour of bulls and supports prospects for additional gains.
A convincing break below a multi-month-old ascending trend-line will negate the positive outlook.

Haresh Menghani FXStreet

Silver (XAG/USD) attracts some dip-buying near the $23.70 area on the first day of a new week and builds on its steady intraday ascent heading into the European session. The white metal climbs to the $24.00 mark in the last hour and seems poised to build on its recent solid bounce from the mid-$22.00s, or a near one-month low touched last week.

From a technical perspective, the XAG/USD last week showed some resilience below and defended an upward-sloping trend line extending from the October swing low. The subsequent strength and acceptance above the very important 200-day Simple Moving Average (SMA) favours bullish traders. Moreover, oscillators on the daily chart have again started gaining positive traction and support prospects for a further appreciating move.

That said, bulls might wait for some follow-through buying beyond the $24.25-$24.30 area, over a one-week high set on Friday, before placing fresh bets. The XAG/USD might then aim to reclaim the $25.00 psychological mark. The upward trajectory could get extended beyond the $25.25 intermediate hurdle, towards the $25.45-$25.50 region en route to the $26.00 neighbourhood, or the highest level since May 5 touched earlier this month.

On the flip side, any meaningful slide might continue to attract some buyers near the 200-day SMA, currently pegged near the $23.55 region. Some follow-through selling, however, might turn the XAG/USD vulnerable to accelerate the slide back towards the $23.00 mark. The latter nears the aforementioned ascending trend-line support, which if broken decisively will negate the positive outlook and shift the bias in favour of bearish traders.

Silver daily chart

Technical levels to watch

XAG/USD

Overview
Today last price	23.98
Today Daily Change	0.15
Today Daily Change %	0.63
Today daily open	23.83

Trends
Daily SMA20	24.05
Daily SMA50	23.3
Daily SMA100	23.21
Daily SMA200	23.57

Levels
Previous Daily High	24.29
Previous Daily Low	23.76
Previous Weekly High	24.29
Previous Weekly Low	22.51
Previous Monthly High	25.27
Previous Monthly Low	21.88
Daily Fibonacci 38.2%	23.96
Daily Fibonacci 61.8%	24.09
Daily Pivot Point S1	23.63
Daily Pivot Point S2	23.42
Daily Pivot Point S3	23.09
Daily Pivot Point R1	24.17
Daily Pivot Point R2	24.5
Daily Pivot Point R3	24.7

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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