Silver Price Analysis: XAG/USD sticks to strong intraday gains near weekly top, just above $23.00


  • Silver gains strong positive traction and moves away from a one-month low touched on Thursday.
  • Technical indicators on the daily chart warrant some caution before placing aggressive bullish bets.
  • A sustained strength beyond the $23.20 area is needed to support prospects for additional gains.

Silver builds on the previous day's bounce from the $22.30 area – support marked by an ascending trend line extending from the June swing low – and gains strong positive traction on Friday. The momentum lifts the white metal to the top end of its weekly range during the early European session, though struggles to make it through the 200-hour Simple Moving Average (SMA) resistance near the $23.15-$23.20 region.

Technical indicators on the daily chart, meanwhile, are yet to confirm a bullish bias and make it prudent to wait for a sustained strength beyond the aforementioned barrier before placing fresh bullish bets. The XAG/USD might then aim to challenge the very important 200-day SMA, currently around the $23.45 region, en route to the 100-day SMA, near the $23.80 region. This is followed by the $24.00 mark, which if cleared will set the stage for additional gains.

The next relevant hurdle is pegged near the $24.30-$24.35 region, above which the XAG/USD could aim towards reclaiming the $25.00 psychological mark. The latter coincides with the August monthly swing high and should act as a pivotal point. Some follow-through buying, leading to subsequent gains beyond the July peak, around the $25.25 region, will shift the near-term bias in favour of bullish traders and should pave the way for a further appreciating move.

On the flip side, the $22.80 area now seems to protect the immediate downside ahead of the $23.30 region, or a nearly one-month low touched on Thursday. A convincing break below will be seen as a fresh trigger for bearish traders and make the XAG/USD vulnerable to resume its downfall witnessed since the beginning of this month. The subsequent slide has the potential to drag the white metal to the next relevant support near the $21.25 zone en route to the $21.00 mark.

Silver daily chart

fxsoriginal

Technical levels to watch

XAG/USD

Overview
Today last price 23.05
Today Daily Change 0.40
Today Daily Change % 1.77
Today daily open 22.65
 
Trends
Daily SMA20 23.63
Daily SMA50 23.74
Daily SMA100 23.76
Daily SMA200 23.48
 
Levels
Previous Daily High 22.98
Previous Daily Low 22.3
Previous Weekly High 24.3
Previous Weekly Low 22.83
Previous Monthly High 25.02
Previous Monthly Low 22.23
Daily Fibonacci 38.2% 22.56
Daily Fibonacci 61.8% 22.72
Daily Pivot Point S1 22.31
Daily Pivot Point S2 21.97
Daily Pivot Point S3 21.63
Daily Pivot Point R1 22.99
Daily Pivot Point R2 23.32
Daily Pivot Point R3 23.67

 

 

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