Silver Price Analysis: XAG/USD sits near multi-week tops, just below mid-$24.00s

Silver regained positive traction on the last day of the week and inched back closer to six-week tops during the mid-European session. The white metal was last seen trading just below the mid-$24.00s, up around 0.70% for the day.

From a technical perspective, the XAG/USD has been consolidating in a range around the 38.2% Fibonacci level of the $28.75-$21.42 downfall. Given the recent breakout through a downward sloping trend-line extending from July swing highs and an inverted head and shoulders neckline, the bias remains tilted in favour of bullish traders.

The constructive setup is reinforced by the fact that technical indicators on the daily chart have been gaining positive traction and are still far from being in the overstretched zone. Moreover, RSI (14) on the 4-hour chart has eased from the overbought territory and supports prospects for a further near-term appreciating move.

Hence, a subsequent move towards testing September monthly swing highs, around the $24.80-85 region, remains a distinct possibility. Bulls might eventually aim to reclaim the key $25.00 psychological mark, which coincides with the 50% Fibo. level.

On the flip side, the overnight swing lows, around the $24.00 mark now seems to protect the immediate downside. Any subsequent decline could be seen as a buying opportunity near the $23.75-70 region. This, in turn, should help limit the corrective pullback near the mentioned trend-line support breakpoint, around the $23.50-45 region.

Silver daily chart

Technical levels to watch