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.

Haresh Menghani FXStreet

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

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

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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