- Silver struggled to capitalize on last week’s bullish breakout momentum through a trading range.
- The formation of an ascending trend channel supports prospects for additional near-term gains.
- The emergence of dip-buying adds credence to the positive outlook and favours bullish traders.
Silver attracted some buying near the $24.20 resistance breakpoint and has now trimmed a part of its intraday losses. The commodity was seen trading around mid-$24.00s during the early North American session, still down over 0.70% for the day.
Looking at the technical picture, the recent positive move over the past two weeks or so has been along an upward sloping channel on short-term charts. This, along with Friday's post-NFP bullish breakout through a multi-day-old trading range hurdle, favours bullish traders.
The positive outlook is reinforced by the fact that technical indicators on the daily chart have just started moving into bullish territory. This, in turn, supports prospects for a further near-term appreciating move amid absent relevant market moving economic releases from the US.
That said, a strong follow-through pickup in the US Treasury bond yields and the US dollar demand held bulls from placing aggressive bets. This makes it prudent to wait for a sustained move beyond daily tops, around $24.80-85 zone, before positioning for any meaningful upside.
The XAG/USD might then accelerate the momentum to reclaim the key $25.00 psychological mark and climb further towards the $25.25-30 area. The momentum could get extended towards an intermediate hurdle near the $25.65 zone en-route August monthly swing highs, around the $26.00 mark.
On the flip side, the $24.20 region might continue to protect the immediate downside. This is closely followed by the lower boundary of the mentioned trend-channel, around the $24.05-$24.00 area. A convincing break below the said handle is needed to negate the bullish bias.
The subsequent technical selling has the potential to drag the XAG/USD to the $23.80-75 horizontal zone en-route the $23.50-45 region and strong support near the $23.00 round-figure mark.
Silver 4-hour chart
Technical levels to watch
|Today last price||24.46|
|Today Daily Change||-0.22|
|Today Daily Change %||-0.89|
|Today daily open||24.68|
|Previous Daily High||24.82|
|Previous Daily Low||24.64|
|Previous Weekly High||24.87|
|Previous Weekly Low||23.76|
|Previous Monthly High||26|
|Previous Monthly Low||22.17|
|Daily Fibonacci 38.2%||24.71|
|Daily Fibonacci 61.8%||24.75|
|Daily Pivot Point S1||24.6|
|Daily Pivot Point S2||24.53|
|Daily Pivot Point S3||24.42|
|Daily Pivot Point R1||24.78|
|Daily Pivot Point R2||24.89|
|Daily Pivot Point R3||24.96|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.