Silver Price Analysis: XAG/USD sits near daily high, seems poised to appreciate further

Silver regains positive traction on Friday and stalls this week’s pullback from a multi-month top.
The technical setup favours bullish traders and supports prospects for additional intraday gains.
A convincing break below the $23.15 confluence support is needed to negate the positive bias.

Haresh Menghani FXStreet

Silver catches fresh bids on Friday and snaps a two-day losing streak, stalling this week's retracement slide from an eight-month high. The white metal maintains its bid tone through the first half of the European session and is currently placed near the daily high, around the $23.75 zone.

From a technical perspective, the emergence of some buying near the $23.40-$23.35 horizontal resistance breakpoint, now turned support, favours bullish traders. The constrictive setup is reinforced by the fact that oscillators on the daily chart maintain their positive bias and have again started gaining traction on the 4-hour chart.

Hence, a subsequent strength, back towards reclaiming the $24.00 mark, remains a distinct possibility. The next relevant hurdle is pegged near the multi-month top, near the $24.30 area touched on Wednesday, which if cleared should lift the XAG/USD towards the $25.00 psychological mark with some intermediate hurdle near the $24.60-$24.70 zone.

On the flip side, the $24.40-$24.35 resistance-turned-support, also the daily low, should protect the immediate downside ahead of the $24.15 confluence support. The latter comprises the 100-period SMA on the 4-hour chart and an ascending trend line extending from November low, which, in turn, should act as a strong base for the XAG/USD.

A convincing breakthrough, leading to a subsequent slide below the $23.00 round figure, will negate the positive outlook and shift the bias in favour of bearish traders. The XAG/USD might then turn vulnerable and accelerate the fall towards testing the $22.00 round-figure mark with some intermediate support near the $22.55-$22.50 horizontal zone.

Silver 4-hour chart

Key levels to watch

XAG/USD

Overview
Today last price	23.74
Today Daily Change	0.18
Today Daily Change %	0.76
Today daily open	23.56

Trends
Daily SMA20	22.86
Daily SMA50	21.26
Daily SMA100	20.31
Daily SMA200	21.17

Levels
Previous Daily High	24.09
Previous Daily Low	23.38
Previous Weekly High	24.13
Previous Weekly Low	22.56
Previous Monthly High	22.25
Previous Monthly Low	18.84
Daily Fibonacci 38.2%	23.65
Daily Fibonacci 61.8%	23.82
Daily Pivot Point S1	23.26
Daily Pivot Point S2	22.97
Daily Pivot Point S3	22.55
Daily Pivot Point R1	23.97
Daily Pivot Point R2	24.39
Daily Pivot Point R3	24.69

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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