Silver Price Analysis: XAG/USD sticks to gains near $23.25 area, remains below 100-day SMA

Silver regains positive traction on Wednesday and inches closer to the multi-week high.
The technical setup favours bulls and supports prospects for a further appreciating move.
A convincing break below the ascending channel support will negate the positive outlook.

Haresh Menghani FXStreet

Silver attracts some dip-buying during the Asian session on Wednesday and stalls the overnight rejection slide from the vicinity of the 100-day Simple Moving Average (SMA). The white metal currently trades around the $23.25 region, up nearly 0.50% for the day, and remains well within the striking distance of a three-week high touched on Tuesday.

Looking at the broader picture, the recent recovery from the $22.00 neighbourhood, or the multi-month low set on June 23, has been along an upward-sloping channel. This points to a well-established short-term uptrend and favours bullish traders. Adding to this, technical indicators on the daily chart have just started gaining positive traction and support prospects for a further near-term appreciating move.

That said, any subsequent move up might continue to confront some resistance near the $23.45 region (100-day SMA), which is closely followed by the $23.55-$23.60 confluence. The latter comprises the top end of the aforementioned trend channel and the 38.2% Fibonacci retracement level of the downfall of May-June downfall from the YTD peak, which if cleared will confirm a fresh bullish breakout.

The XAG/USD might then accelerate the momentum towards reclaiming the $24.00 round figure, which coincides with the 50% Fibo. level. The positive momentum could get extended further towards the $24.20-$24.25 intermediate barrier en route to the June monthly swing high, around the $24.55 region, above which the commodity might eventually aim to reclaim the $25.00 psychological mark.

On the flip side, the 23.6% Fibo. level, around the $23.00 round figure, now seems to protect the immediate downside. Any further decline is more likely to attract buyers and remain cushioned near the ascending trend-channel support, currently pegged around the $22.75-$22.70 region. That said, a convincing break below could make the XAG/USD vulnerable to sliding back towards challenging the $22 mark.

Some follow-through selling should pave the way for a fall towards the $21.70-$21.65 zone, below which the XAG/USD could drop to the $21.25 support en route to the $21.00 round figure.

Silver daily chart

Key levels to watch

XAG/USD

Overview
Today last price	23.23
Today Daily Change	0.10
Today Daily Change %	0.43
Today daily open	23.13

Trends
Daily SMA20	23.06
Daily SMA50	23.65
Daily SMA100	23.43
Daily SMA200	22.71

Levels
Previous Daily High	23.39
Previous Daily Low	23.02
Previous Weekly High	23.31
Previous Weekly Low	22.52
Previous Monthly High	24.53
Previous Monthly Low	22.11
Daily Fibonacci 38.2%	23.16
Daily Fibonacci 61.8%	23.25
Daily Pivot Point S1	22.97
Daily Pivot Point S2	22.81
Daily Pivot Point S3	22.6
Daily Pivot Point R1	23.34
Daily Pivot Point R2	23.55
Daily Pivot Point R3	23.71

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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