Silver Price Analysis: XAG/USD refreshes weekly top, seems poised to appreciate further

Silver scales higher for the third straight day and climbs to a fresh weekly high on Thursday.
The technical setup seems tilted in favour of bulls and supports prospects for further gains.
A sustained break below the $24.00 mark is needed to negate the near-term positive bias.

Haresh Menghani FXStreet

Silver gains strong follow-through positive traction for the third successive day on Thursday and climbs to a fresh weekly top during the early part of the European session. The white metal currently trades just above the $25.00 psychological mark and remains well within the striking distance of over a two-month peak touched last week.

The technical setup, meanwhile, favours bullish traders and suggests that the path of least resistance for the XAG/USD is to the upside. The positive outlook is reinforced by the fact that oscillators on hourly/daily charts are holding comfortably in bullish territory and are still far from being in the overbought zone. That said, it will still be prudent to wait for some follow-through buying beyond the $25.25 area, or the monthly peak, before positioning for any further appreciating move.

The XAG/USD might then accelerate the positive momentum towards the $25.50-$25.55 intermediate hurdle and eventually aim towards reclaiming the $26.00 round figure. This is closely followed by the YTD peak, around the $26.10-$26.15 area touched in May. A sustained strength beyond will be seen as a fresh trigger for bullish traders and pave the way for additional gains.

On the flip side, any corrective pullback is more likely to attract some buying near the $24.85-$24.80 region. This should help limit the downside for the XAG/USD near the $24.60 zone. Failure to defend the said support will expose the weekly low, around the $24.25 region, which if broken decisively will negate the positive outlook and shift the bias in favour of bearish traders. Silver might then drop further below the $24.00 mark, towards the $23.65-$23.60 support.

The XAG/USD could then extend the downward trajectory further towards the $23.20-$23.15 region. Some follow-through selling below the $23.00 mark, nearing the very important 200-day SMA, will make silver vulnerable to challenge the multi-month low, around the $22.15-$22.10 area.

Silver daily chart

Key levels to watch

XAG/USD

Overview
Today last price	25.05
Today Daily Change	0.12
Today Daily Change %	0.48
Today daily open	24.93

Trends
Daily SMA20	23.94
Daily SMA50	23.63
Daily SMA100	23.84
Daily SMA200	23

Levels
Previous Daily High	25.04
Previous Daily Low	24.52
Previous Weekly High	25.27
Previous Weekly Low	24.59
Previous Monthly High	24.53
Previous Monthly Low	22.11
Daily Fibonacci 38.2%	24.84
Daily Fibonacci 61.8%	24.72
Daily Pivot Point S1	24.62
Daily Pivot Point S2	24.31
Daily Pivot Point S3	24.1
Daily Pivot Point R1	25.14
Daily Pivot Point R2	25.35
Daily Pivot Point R3	25.66

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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