Silver Price Analysis: XAG/USD eases from over a one-week high, holds above 100-day SMA


  • Silver is seen consolidating the previous day’s positive move to over a one-week high.
  • The mixed technical setup warrants some caution before placing aggressive bullish bets.
  • Sustained Weakness back below the $23.00 mark should pave the way for deeper losses.

Silver struggles to capitalize on the previous day's positive move and oscillated in a narrow trading band through the early part of the European session on Thursday. The white metal is currently placed around the $23.50-$23.55 region, representing the 23.6% Fibonacci retracement level of the recent downfall from over a one-year high.

From a technical perspective, the overnight sustained strength and close above the 100-day Simple Moving Average (SMA) favours bullish traders. That said, oscillators on the daily chart - though have been recovering - are yet to confirm the positive outlook. This makes it prudent to wait for some follow-through buying beyond the $23.60 area, or over a one-week high touched on Wednesday, before positioning for any further gains.

The XAG/USD might then surpass the $24.00 mark and accelerate the momentum towards the next relevant hurdle near the $24.20-$24.25 region en route to the $24.40-$24.50 horizontal support breakpoint. The latter coincides with the 50% Fibo. level, above which a fresh bout of a short-covering should allow bullish traders to reclaim the $25.00 psychological mark. The upward trajectory could get extended towards the $25.30-$25.35 supply zone.

On the flip side, weakness back below the 100-day SMA, currently around the $23..35 area, could find some support near the $23.00 round figure. This is followed by the May monthly swing low, around the $22.70-$22.65 region, which if broken decisively will be seen as a fresh trigger for bearish traders. The XAG/USD might then turn vulnerable to weaker further towards the $22.25 intermediate support before dropping to the $22.00 round figure.

Silver daily chart

fxsoriginal

Key levels to watch

XAG/USD

Overview
Today last price 23.56
Today Daily Change 0.05
Today Daily Change % 0.21
Today daily open 23.51
 
Trends
Daily SMA20 24.07
Daily SMA50 24.42
Daily SMA100 23.35
Daily SMA200 22.08
 
Levels
Previous Daily High 23.62
Previous Daily Low 23.1
Previous Weekly High 23.92
Previous Weekly Low 22.68
Previous Monthly High 26.14
Previous Monthly Low 22.68
Daily Fibonacci 38.2% 23.42
Daily Fibonacci 61.8% 23.3
Daily Pivot Point S1 23.2
Daily Pivot Point S2 22.89
Daily Pivot Point S3 22.68
Daily Pivot Point R1 23.72
Daily Pivot Point R2 23.93
Daily Pivot Point R3 24.24

 

 

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