Silver Price Analysis: XAG/USD Bulls Retain Control Above $23.50, Highest Since February

Silver catches fresh bids on Thursday, following the previous day’s two-way/directionless price moves, and rallies to a nearly two-month high during the early European session. The white metal is currently placed around the $23.60-$23.65 region, up over 1% for the day. It seems poised to prolong its recent appreciating move from levels just below the $20.00 psychological mark or the YTD low touched earlier this March.

Against the backdrop of the recent breakout through the 61.8% Fibonacci retracement level of the pullback from over a nine-month peak, the ongoing positive move adds credence to the bullish outlook for the XAG/USD. Hence, back towards the $24.00 mark, some follow-through strength looks like a distinct possibility. The momentum could extend further towards the $24.65 region (multi-month peak touched in February) en route to the $25.00 psychological mark.

That said, Relative Strength Index (RSI) on the 1-hour chart is already flashing overbought conditions and remains close to 70 on 4-hour/daily charts. This makes it prudent to wait for some near-term consolidation or a modest pullback before placing new bullish bets. Any meaningful corrective slide, however, might now be seen as a buying opportunity near the $23.00 round-figure mark and remain limited near the 61.8% Fibo—level resistance breakpoint, around the $22.80 area.

The latter should now act as a strong base and a pivotal point, which, if broken decisively, might prompt some technical selling. A subsequent slide below the $22.50 region could drag the XAG/USD towards the $22.20 intermediate support en route to the $22.00 round figure. This is closely followed by the $21.75-$21.70 zone. A convincing break below said support levels is needed to negate the positive outlook and shift the near-term bias in favor of bearish traders.

This Post Has One Comment

  1. dobry sklep

    Wow, amazing weblog structure! How lengthy have you ever been running a blog for?
    you make blogging look easy. The overall look of your site is great, as well as the
    content material! You can see similar here sklep internetowy

Leave a Reply

Contact Us

Disclaimer

Forex, Crypto, Options, and Binary Options have both large potential rewards and large potential risks. Therefore, before investing or trading any of the assets, ensure you are aware of and willing to accept the accompanying risks. Do not trade money you cannot afford to lose.

All Rights Reserved. None of the content of this website can be published elsewhere by any means without the prior consent of the owner(s). Please, check our terms & conditions and privacy policy before continuing to use this website.

This website and its owner(s) are not in any way liable for any incurred loss, whether caused by the information provided on this website or otherwise. The use of this website, including the content and information provided, is the user’s sole liability.