• Silver scales higher for the third successive day and climbs to a two-week high on Friday.
  • Mixed technical set-up warrants caution for bulls, before positioning for further move up.
  • A convincing break below the $18.00 mark is needed to shift the bias in favour of bears.

Silver prolongs its recent recovery move from the lowest level since June 2020 and gains traction for the third successive day on Friday. This also marks the fifth day of a positive move in the previous six and lifts the white metal to a two-week high, closer to the $19.00 mark during the first half of the European session.

This week's breakout through the top end of a nearly one-month-old descending channel and subsequent strength beyond the 100-period SMA on the 4-hour chart is seen as a key trigger for bullish traders. This might have set the stage for additional near-term gains, though mixed oscillators on hourly/daily charts warrant some caution.

Technical indicators on the daily chart - though have been recovering from the negative territory - are yet to confirm a bullish bias. Moreover, RSI (14) on the 4-hour chart is already flashing slightly overbought conditions. This makes it prudent to wait for some consolidation or a modest pullback before positioning for the next leg up.

From current levels, any meaningful slide is likely to find decent support near the $18.60-$18.50 region ahead of the descending trend-channel breakpoint, currently around the $18.20-$18.15 zone. Some follow-through selling below the $18.00 mark will negate the positive bias and suggest that the corrective bounce has run out of steam.

On the flip side, momentum beyond the $19.00 round figure is likely to confront stiff resistance near the 200-period SMA on the 4-hour chart. The said barrier, currently around the $19.35 region, should now act as a key pivotal point. Sustained strength beyond will reaffirm the constructive outlook and pave the way for further upside.

Silver 4-hour chart

fxsoriginal

Key levels to watch

XAG/USD

Overview
Today last price 18.81
Today Daily Change 0.28
Today Daily Change % 1.51
Today daily open 18.53
 
Trends
Daily SMA20 18.96
Daily SMA50 19.26
Daily SMA100 20.58
Daily SMA200 22.22
 
Levels
Previous Daily High 18.74
Previous Daily Low 18.32
Previous Weekly High 18.92
Previous Weekly Low 17.56
Previous Monthly High 20.88
Previous Monthly Low 17.94
Daily Fibonacci 38.2% 18.58
Daily Fibonacci 61.8% 18.48
Daily Pivot Point S1 18.32
Daily Pivot Point S2 18.11
Daily Pivot Point S3 17.9
Daily Pivot Point R1 18.74
Daily Pivot Point R2 18.95
Daily Pivot Point R3 19.16

 

 

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