Silver Price Analysis: XAG/USD retreats from multi-day top, technical setup favours bulls

Silver struggles to capitalize on its modest intraday gains beyond the $24.00 mark.
The technical set-up favours bullish traders and supports prospects for further gains.
A convincing break below the $23.00 mark is needed to negate the positive outlook.

Haresh Menghani FXStreet

Silver builds on Friday's goodish rebound from the vicinity of the $23.00 mark and gains some follow-through traction on the first day of a new week. The white metal, however, struggles to find acceptance above the $24.00 round figure and retreats from a three-day high touched during the first half of the European session.

The XAG/USD, meanwhile, manages to defend the 100-period SMA on the 4-hour chart, around the $23.70 area, and the technical set-up still seems tilted in favour of bullish traders. The outlook is reinforced by positive oscillators on daily/hourly charts. That said, it will still be prudent to wait for a sustained strength beyond the $24.00 mark before positioning for any further appreciating move.

The XAG/USD might then aim to surpass an intermediate hurdle near the $24.25 region, which is followed by the multi-month high, around the $24.50-$24.55 region touched last week. Some follow-through buying beyond the latter will be seen as a fresh trigger for bullish traders and lift spot prices further towards reclaiming the $25.00 psychological mark for the first time since April 2022.

On the flip side, the $23.20-$23.10 area now seems to have emerged as immediate support ahead of the $23.00 round figure. A convincing break below could drag the XAG/USD towards the $22.60-$22.55 region en route to the next relevant support near the $22.10-$22.00 horizontal zone. Failure to defend the latter will mark a breakdown and set the stage for a further near-term depreciating move.

Silver 4-hour chart

Key levels to watch

XAG/USD

Overview
Today last price	23.83
Today Daily Change	-0.01
Today Daily Change %	-0.04
Today daily open	23.84

Trends
Daily SMA20	23.68
Daily SMA50	22.31
Daily SMA100	20.71
Daily SMA200	21.1

Levels
Previous Daily High	23.91
Previous Daily Low	23.2
Previous Weekly High	24.55
Previous Weekly Low	23.12
Previous Monthly High	24.3
Previous Monthly Low	22.03
Daily Fibonacci 38.2%	23.64
Daily Fibonacci 61.8%	23.47
Daily Pivot Point S1	23.39
Daily Pivot Point S2	22.94
Daily Pivot Point S3	22.68
Daily Pivot Point R1	24.1
Daily Pivot Point R2	24.36
Daily Pivot Point R3	24.81

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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