Silver Price Analysis: XAG/USD Consolidates Near $23.65 Area, Below Descending Trend-Line Hurdle

Silver, Bars, 5000 Grams, Real Value

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  • Silver oscillates in a narrow trading band for the second successive day on Friday.
  • Bullish oscillators on the daily chart support prospects for some short-term gains.
  • A breakout through an ascending trend line is needed to confirm the bullish bias.

Silver (XAG/USD) continues with its struggle to gain any meaningful traction and seesaws between tepid gains/minor losses for the second successive day on Friday. The white metal currently trades around the $23.65 region, nearly unchanged for the day and below a downward-sloping trend line resistance extending from the May swing high.

The aforementioned barrier, currently pegged near the $24.00 round figure, should act as a key pivotal point and help determine the next leg of a directional move for the XAG/USD. Against the backdrop of the recent sustained strength beyond the 200-day Simple Moving Average (SMA), positive oscillators on the daily chart support prospects for an eventual breakout through the said resistance.

A sustained strength beyond will be seen as a fresh trigger for bulls. The subsequent move-up should allow the XAG/USD to surpass the $24.20-$24.25 intermediate hurdle and make a fresh attempt to conquer the $25.00 psychological mark. Some follow-through buying beyond the $25.15-$25.20 region will set the stage for a move towards reclaiming the $26.00 mark for the first time since May.

On the flip side, the 200-day SMA, currently around the $23.35 region, might continue to protect the immediate downside. Any further decline might still be seen as a buying opportunity and remain limited near the $23.00 mark. A convincing break below the latter, however, might prompt aggressive technical selling and drag the XAG/USD towards the $22.35-$22.30 zone en route to the $22.00 mark.
 

Silver daily chart

(Click on image to enlarge)

fxsoriginal


Technical levels to watch

XAG/USD

OVERVIEW
Today last price 23.66
Today Daily Change -0.01
Today Daily Change % -0.04
Today daily open 23.67
TRENDS
Daily SMA20 23.1
Daily SMA50 22.75
Daily SMA100 23.24
Daily SMA200 23.32
LEVELS
Previous Daily High 23.79
Previous Daily Low 23.6
Previous Weekly High 24.15
Previous Weekly Low 21.88
Previous Monthly High 23.7
Previous Monthly Low 20.68
Daily Fibonacci 38.2% 23.72
Daily Fibonacci 61.8% 23.67
Daily Pivot Point S1 23.58
Daily Pivot Point S2 23.5
Daily Pivot Point S3 23.39
Daily Pivot Point R1 23.78
Daily Pivot Point R2 23.88
Daily Pivot Point R3 23.97

More By This Author:

USD/CHF Consolidates Ahead Of US PMI Data, Remains Below 0.8850
AUD/USD Consolidates Its Gains Around 0.6560 Ahead Of The US PMI Data
USD/JPY Fails To Hold Momentum And Trims Daily Losses

Disclosure: Information on this article contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes ...

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