Silver Price Analysis: XAG/USD sticks to strong gains above $23.00, eyes 100-day SMA

Silver gains strong positive traction on Thursday and climbs back closer to the 100-day SMA barrier.
The technical setup favours bullish traders and supports prospects for a further appreciating move.
A sustained move and acceptance below $22.00 is needed to negate the near-term positive bias.

Haresh Menghani FXStreet

Silver (XAG/USD) builds on the overnight bounce from the 200-hour Simple Moving Average (SMA) support near the $22.75 area, or the weekly low and gains strong positive traction on Thursday. The momentum remains unabated through the first half of the European session and lifts the white metal to the $23.10-$23.15 region.

From a technical perspective, the XAG/USD is currently placed just below the 100-day SMA, which is closely followed by the very important 200-day SMA hurdle near the $23.30-$23.35 zone and the monthly peak, around mid-$23.00 touched last week. A sustained strength beyond the latter will be seen as a fresh trigger for bullish traders and pave the way for the resumption of last week's strong move up from sub-$22.00 levels.

Given that oscillators on the daily chart have just started gaining positive traction, the XAG/USD might then aim to reclaim the $24.00 round figure. The momentum could extend further and allow the white metal to climb towards the next relevant hurdle near the $24.50-$24.60 region en route to the $25.00 psychological mark.

On the flip side, the overnight swing low, around the $22.75 region, now seems to protect the immediate downside ahead of the mid-$22.00s and the $22.30 horizontal support. Some follow-through selling might expose the $22.00 mark. Acceptance below a two-month low, around the $21.90-$21.85 zone touched in January, will be seen as a fresh trigger for bearish traders and make the XAG/USD vulnerable to test the $21.40-$21.35 support.

The subsequent decline has the potential to drag the XAG/USD further below the $21.00 round-figure mark, towards retesting the October monthly swing low near the $20.70-$20.65 region.

Silver daily chart

Technical levels to watch

XAG/USD

Overview
Today last price	23.13
Today Daily Change	0.22
Today Daily Change %	0.96
Today daily open	22.91

Trends
Daily SMA20	22.76
Daily SMA50	23.14
Daily SMA100	23.17
Daily SMA200	23.3

Levels
Previous Daily High	23.18
Previous Daily Low	22.76
Previous Weekly High	23.5
Previous Weekly Low	21.93
Previous Monthly High	24.09
Previous Monthly Low	21.93
Daily Fibonacci 38.2%	22.92
Daily Fibonacci 61.8%	23.02
Daily Pivot Point S1	22.71
Daily Pivot Point S2	22.52
Daily Pivot Point S3	22.29
Daily Pivot Point R1	23.14
Daily Pivot Point R2	23.37
Daily Pivot Point R3	23.57

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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