Silver Price Analysis: XAG/USD bulls await a sustained move beyond 100-day SMA
- Silver gained some positive traction on Monday, albeit lacked any follow-through buying.
- The set-up seems tilted in favour of bullish traders and supports prospects for further gains.
- Any meaningful pullback might still be seen as a buying opportunity near the $24.00 mark.
Silver edged higher on the first day of a new trading week, albeit struggled to capitalize on the move and remained capped near the 100-day SMA resistance around mid-$24.00s.
From a technical perspective, last week's sustained strength beyond a short-term descending trend-line resistance validated an inverted head and shoulders bullish breakout. A subsequent move and acceptance above the 38.2% Fibonacci level of the $28.75-$21.42 downfall supports prospects for additional gains.
The constructive set-up is reinforced by bullish technical indicators on the daily chart, which are still far from being in the overnight territory. Hence, some follow-through move beyond the $24.80-85 region, towards reclaiming the key $25.00 psychological mark, remains a distinct possibility.
The latter coincides with the 50% Fibo. level, which if cleared decisively should set the stage for an extension of the appreciating move. The XAG/USD could then climb to an intermediate hurdle near the $25.55-60 region before eventually darting towards the $26.00 mark, or the 61.8% Fibo. level.
On the flip side, any meaningful pullback might continue to attract some buying near the $24.00 mark, which now seems to act as a strong base for the XAG/USD. Failure to defend the mentioned support might prompt some technical selling and accelerate the corrective slide towards mid-$23.00s.
This is closely followed by the $23.20-15 confluence support, comprising of the descending trend-line resistance breakpoint and the 23.6% Fibo. level. A convincing break below will shift the bias in favour of bearish traders and expose the next relevant support near mid-$22.00s.
Silver daily chart
Technical levels to watch