Silver Price Analysis: XAG/USD refreshes two-week high, flirts with $22.20-30 support breakpoint

Silver gains some follow-through traction on Thursday and advances to a near two-week high.
The technical setup warrants some caution for bulls and before positioning for additional gains.
Weakness below the $21.60-55 area will suggest that the recovery momentum has lost steam.

Haresh Menghani FXStreet

Silver scales higher for the second successive day on Thursday – also marking the fourth day of a positive move in the previous five – and touches a near two-week high during the early part of the European session. The white metal, however, remains below the $22.30 strong horizontal support breakpoint, now turned resistance, warranting some caution for bullish traders.

Moreover, neutral technical indicators on the daily chart make it prudent to wait for some follow-through buying beyond the aforementioned support-turned-resistance before positioning for any further appreciating move. The subsequent short-covering rally should allow the XAG/USD to reclaim the $23.00 mark. The momentum could get extended further towards challenging the very important 200-day Simple Moving Average (SMA), currently pegged around the $23.35 area.

The latter should act as a key pivotal point, which if cleared decisively will suggest that the XAG/USD has bottomed out in the near term and pave the way for an extension of the recent recovery move witnessed over the past week or so. The white metal might then climb to the $23.75-$23.80 region (September 22 high) en route to the $24.00 round figure and the $24.30-$24.35 hurdle.

On the flip side, the $21.85-$21.80 zone now seems to have emerged as an immediate strong support. The next relevant support is pegged near the $21.60-$21.55 region, or the weekly low. Some follow-through selling could drag the XAG/USD back towards a multi-day-old trading range resistance breakpoint, now turned support, around the $21.3-$21.30 region en route to the $21.00 round figure mark and a near seven-month low, around the $20.70-$20.65 region touched last week.

Silver daily chart

Technical levels to watch

XAG/USD

Overview
Today last price	22.12
Today Daily Change	0.09
Today Daily Change %	0.41
Today daily open	22.03

Trends
Daily SMA20	22.36
Daily SMA50	22.97
Daily SMA100	23.34
Daily SMA200	23.36

Levels
Previous Daily High	22.12
Previous Daily Low	21.8
Previous Weekly High	22.2
Previous Weekly Low	20.68
Previous Monthly High	24.82
Previous Monthly Low	22.12
Daily Fibonacci 38.2%	22
Daily Fibonacci 61.8%	21.92
Daily Pivot Point S1	21.85
Daily Pivot Point S2	21.66
Daily Pivot Point S3	21.52
Daily Pivot Point R1	22.17
Daily Pivot Point R2	22.31
Daily Pivot Point R3	22.5

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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