- Silver attracts some buyers for the fifth successive day on Friday.
- The overnight breakout through the $23.60-70 area favours bulls.
- Corrective declines are likely to get bought into and remain limited.
Silver (XAG/USD) gains positive traction for the fifth successive day on Friday and remains well within the striking distance of its highest level since September 4 touched the previous day. The white metal currently trades just below the $24.00 mark and seems poised to build on this week's solid bounce from a four-week trough.
From a technical perspective, acceptance above the very important 200-day Simple Moving Average (SMA) and the overnight breakout through the $23.60-$23.70 supply zone was seen as a fresh trigger for bullish traders. Moreover, oscillators on the daily chart have been gaining positive traction and validate the near-term positive outlook, suggesting that the path of least resistance for the XAG/USD is to the upside.
Some follow-through buying beyond the $24.00 round figure will reaffirm the constructive setup and the white metal to the $24.20-$24.25 intermediate resistance. The momentum could get extended and allow the XAG/USD to make a fresh attempt towards conquering the $25.00 psychological mark. Nevertheless, Silver remains on track to register strong weekly gains and post its highest weekly close since late August.
On the flip side, the $23.70-$23.60 strong resistance breakpoint now seems to protect the immediate downside ahead of the 200-day SMA, currently pegged near the $23.30 region. Any further decline might now attract fresh buyers and remain limited near the $23.00 mark. The latter should act as a key pivotal point, which if broken could drag the XAG/USD to the $22.35-$22.30 zone en route to the $22.00 mark.
A convincing break below the latter might shift the near-term bias back in favour of bearish traders. Some follow-through selling below the $21.85 region, or the monthly low, could make the XAG/USD vulnerable to accelerate the fall towards the $21.35-$21.30 region. The white metal could eventually weaken further below the $21.00 mark and test a multi-month low, around the $20.70-$20.65 area touched in October.
Silver daily chart
Technical levels to watch
|Today last price||23.9|
|Today Daily Change||0.15|
|Today Daily Change %||0.63|
|Today daily open||23.75|
|Previous Daily High||24.08|
|Previous Daily Low||23.28|
|Previous Weekly High||23.26|
|Previous Weekly Low||22.19|
|Previous Monthly High||23.7|
|Previous Monthly Low||20.68|
|Daily Fibonacci 38.2%||23.78|
|Daily Fibonacci 61.8%||23.59|
|Daily Pivot Point S1||23.33|
|Daily Pivot Point S2||22.91|
|Daily Pivot Point S3||22.53|
|Daily Pivot Point R1||24.13|
|Daily Pivot Point R2||24.5|
|Daily Pivot Point R3||24.92|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.