Silver Price Analysis: XAG/USD pares intraday losses, down little around mid-$24.00s


  • 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

fxsoriginal

Technical levels to watch

XAG/USD

Overview
Today last price 24.46
Today Daily Change -0.22
Today Daily Change % -0.89
Today daily open 24.68
 
Trends
Daily SMA20 23.77
Daily SMA50 24.84
Daily SMA100 25.96
Daily SMA200 25.89
 
Levels
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

 

 

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