- Silver struggles to capitalize on a modest uptick and fails near the $23.80 support breakpoint.
- The mixed technical setup warrants some caution before placing aggressive directional bets.
- A sustained move beyond the $24.50 area is needed to negate any near-term negative outlook.
Silver builds on Friday's modest bounce from the $23.30 area and gains some positive traction on the first day of a new week. The white metal, however, struggles to capitalize on the strength and remains capped near the $23.70-$23.80 confluence support breakpoint, comprising the 200-hour SMA and the lower end of a short-term ascending channel.
From a technical perspective, last week's break below the aforementioned confluence support suggests that the near-term bias might have already shifted in favour of bearish traders. That said, oscillators on daily/hourly charts - though they have been losing momentum - are yet to confirm the negative outlook. This, in turn, warrants some caution before positioning for any further depreciating move.
In the meantime, Friday's swing low, around the $23.30 region, now seems to act as immediate support. A convincing break below will make the XAG/USD vulnerable to weaken below the $23.00 mark and test the next relevant support near the $22.75 area. The downward trajectory could eventually drag the white metal towards the $22.20-$22.15 intermediate support en route to the $22.00 round figure.
On the flip side, momentum beyond the $23.70-$23.80 support-turned-resistance, might confront hurdle near the $24.00 mark. This is followed by last week's peak, around the $24.30 region, and the $24.50-$24.55 supply zone, or a multi-month peak touched on January 3. A sustained above should allow the XAG/USD to aim back to reclaim the $25.00 psychological mark for the first time since April 2022.
Silver 1-hour chart
Key levels to watch
|Today last price||23.7|
|Today Daily Change||0.14|
|Today Daily Change %||0.59|
|Today daily open||23.56|
|Previous Daily High||24.01|
|Previous Daily Low||23.3|
|Previous Weekly High||24.3|
|Previous Weekly Low||22.76|
|Previous Monthly High||24.3|
|Previous Monthly Low||22.03|
|Daily Fibonacci 38.2%||23.57|
|Daily Fibonacci 61.8%||23.74|
|Daily Pivot Point S1||23.24|
|Daily Pivot Point S2||22.92|
|Daily Pivot Point S3||22.53|
|Daily Pivot Point R1||23.95|
|Daily Pivot Point R2||24.33|
|Daily Pivot Point R3||24.66|
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