Silver Price Analysis: XAG/USD recovers early lost ground, seems poised to climb further

Silver reverses an intraday dip to the $22.55 area and climbs back closer to the overnight swing high.
The technical setup favours bullish traders and supports prospects for a further appreciating move.
Any meaningful pullback might attract some di-buyers and remains limited near the $22.00 mark.

Haresh Menghani FXStreet

Silver attracts fresh buyers near the $22.55 region on Thursday and steadily climbs back closer to the overnight swing high during the first half of the European session. The white metal is currently placed around the $22.70-$22.75 area and seems poised to build on its intraday ascent.

This week's repeated failures to break through the $22.00 mark and the overnight goodish rebound from the vicinity of the 200-hour SMA favours bullish traders. Moreover, positive technical indicators on daily/hourly charts are still away from being in the overbought zone and add credence to the constructive outlook for the XAG/USD.

This, in turn, supports prospects for a move back towards reclaiming the $23.00 round-figure mark. The momentum could further get extended and allow the XAG/USD to challenge the multi-month peak, around the $23.50-$23.55 zone touched earlier this week. Some follow-through buying should pave the way for an extension of the upward trajectory.

On the flip side, the daily swing low, around the $22.55 region, should protect the immediate downside. Any subsequent fall might continue to find decent support near the 200-hour SMA, currently around the $22.15-$22.10 zone. This is followed by the $22.00 mark, which if broken will negate the positive outlook for the XAG/USD.

The next relevant support is pegged near the $21.40 region ahead of the technical significant 200-day SMA, around the $21.25 area, and the $21.00 mark. The latter should act as a strong base for spot prices. A convincing break below will shift the bias in favour of bearish traders and prompt aggressive technical selling around the XAG/USD.

Silver 1-hour chart

Key levels to watch

XAG/USD

Overview
Today last price	22.72
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	22.72

Trends
Daily SMA20	21.7
Daily SMA50	20.45
Daily SMA100	19.87
Daily SMA200	21.28

Levels
Previous Daily High	22.82
Previous Daily Low	22.09
Previous Weekly High	23.24
Previous Weekly Low	20.87
Previous Monthly High	22.25
Previous Monthly Low	18.84
Daily Fibonacci 38.2%	22.54
Daily Fibonacci 61.8%	22.37
Daily Pivot Point S1	22.27
Daily Pivot Point S2	21.82
Daily Pivot Point S3	21.55
Daily Pivot Point R1	23
Daily Pivot Point R2	23.27
Daily Pivot Point R3	23.72

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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