Silver Price Analysis: XAG/USD trades with modest gains around $24.00 mark, 50% Fibo.


  • Silver attracted dip-buying near the weekly trading range support, around the $23.80-75 region.
  • The range-bound price action constitutes the formation of a rectangle, pointing to indecision.
  • Mixed technical indicators on hourly/daily charts warrant caution before placing aggressive bets.

Silver regained some positive traction on the last day of the week and recovered a part of the previous day's losses. The commodity maintained its bid tone through the first half of the European session and was last seen hovering around the $24.00 mark.

Looking at the broader picture, the XAG/USD has been oscillating in a range since the beginning of this week. The price action constitutes the formation of a rectangle on short-term charts, pointing to indecision amid traders over the next leg of a directional move.

Meanwhile, technical indicators on hourly charts have again started gaining positive traction but are yet to confirm a bullish bias on the daily chart. This, in turn, makes it prudent to wait for a convincing break through the trading range before placing aggressive bets.

From current levels, any subsequent positive move might continue to confront stiff resistance near the $24.20-25 region. This is closely followed by the 200-period SMA and a resistance marked by the 61.8% Fibonacci level of the $26.00-$22.17 downfall, around the $24.50 area.

A sustained move beyond will be seen as a fresh trigger for bullish traders and pave the way for a further near-term appreciating move. The XAG/USD might then accelerate the momentum towards the key $25.00 psychological mark en-route the next hurdle near the $25.35-40 region.

On the downside, the lower boundary of the weekly trading range, around the $23.80-75 region, should continue to protect the immediate downside. Some follow-through selling below the 38.2% Fibo. level, around the $23.60 region, could drag the XAG/USD towards the $23.00 mark, or 23.6% Fibo.

Silver 4-hour chart

fxsoriginal

Technical levels to watch

XAG/USD

Overview
Today last price 24.05
Today Daily Change 0.14
Today Daily Change % 0.59
Today daily open 23.91
 
Trends
Daily SMA20 23.69
Daily SMA50 24.9
Daily SMA100 25.98
Daily SMA200 25.87
 
Levels
Previous Daily High 24.22
Previous Daily Low 23.79
Previous Weekly High 24.12
Previous Weekly Low 22.98
Previous Monthly High 26
Previous Monthly Low 22.17
Daily Fibonacci 38.2% 23.96
Daily Fibonacci 61.8% 24.06
Daily Pivot Point S1 23.73
Daily Pivot Point S2 23.55
Daily Pivot Point S3 23.3
Daily Pivot Point R1 24.15
Daily Pivot Point R2 24.4
Daily Pivot Point R3 24.58

 

 

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