• Silver oscillates in a narrow trading band above the $20.00 round-figure mark on Friday.
  • The technical set-up favour bulls and supports prospects for a further appreciating move.
  • A convincing break below the $19.20 area is needed to negate any near-term positive bias.

Silver struggles to gain any meaningful traction on Friday and remains confined in a narrow range through the early European session. The white metal is currently hovering in neutral territory and so far, has managed to hold above the $20.00 psychological mark.

From a technical perspective, any subsequent move up is likely to confront stiff resistance near the mid-$20.00s confluence. The said barrier comprises the 50-day SMA and the 50% Fibonacci retracement level of the $22.52-$18.15 downfall, which should now act as a key pivotal point.

Positive oscillators on hourly/daily charts, meanwhile, support prospects for an eventual breakout through the aforementioned confluence hurdle. Hence, a subsequent positive move could lift the XAG/USD towards the 61.8% Fibo. level, around the $20.85 area, en route to the $21.00 mark.

The momentum could further get extended towards the next relevant hurdle near the $21.40-$21.50 area before the XAG/USD eventually aims to reclaim the $22.00 mark. The latter coincides with the 100-day SMA, which if cleared decisively would be seen as a fresh trigger for bullish traders.

On the flip side, the weekly swing low, around the $19.80-$19.75 region, which coincides with the 38.2% Fibo. level now seems to act as immediate support. Any further decline is more likely to stall and find decent support near the 23.6% Fibo. level, around the $19.20 region.

Some follow-through selling, leading to a subsequent break below the $19.00 mark, would shift the bias back in favour of bearish traders. The XAG/USD could then fall to the $18.40 intermediate support en route to the YTD low, around the $18.15 region touched on July 14.

Silver daily chart

Key levels to watch

XAG/USD

Overview
Today last price 20.19
Today Daily Change 0.02
Today Daily Change % 0.10
Today daily open 20.17
 
Trends
Daily SMA20 19.22
Daily SMA50 20.42
Daily SMA100 22.03
Daily SMA200 22.82
 
Levels
Previous Daily High 20.39
Previous Daily Low 19.97
Previous Weekly High 20.37
Previous Weekly Low 18.32
Previous Monthly High 20.37
Previous Monthly Low 18.15
Daily Fibonacci 38.2% 20.23
Daily Fibonacci 61.8% 20.13
Daily Pivot Point S1 19.96
Daily Pivot Point S2 19.75
Daily Pivot Point S3 19.54
Daily Pivot Point R1 20.39
Daily Pivot Point R2 20.6
Daily Pivot Point R3 20.81

 

 

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