Silver Price Analysis: XAG/USD bulls look to seize control, move beyond $24.00 awaited
- Silver catches aggressive bids on Wednesday and snaps a two-day losing streak.
- The technical setup supports prospects for a further intraday appreciating move.
- A convincing break below the $23.00 mark is needed to negate the positive bias.
Silver regains positive traction on Wednesday and reverses its weekly losses recorded over the past two trading sessions. The white metal sticks to its intraday gains through the early European session, with bulls now awaiting a sustained move beyond the $24.00 mark before placing fresh bets.
Meanwhile, technical indicators on the daily chart are still holding in the bullish territory and have been gaining positive traction on hourly charts. This, along with acceptance above the 200-hour SMA, supports prospects for a further near-term appreciating move. Some follow-through buying beyond the $24.00-$24.10 area will reaffirm the constructive setup and pave the way for additional gains.
The XAG/USD might then aim to surpass an intermediate hurdle near the $24.25 zone and accelerate the momentum towards retesting the multi-month high, around the $24.50-$24.55 region touched last week. Some follow-through buying will be seen as a fresh trigger for bullish traders and lift spot prices further towards the $25.00 psychological mark, or the highest level since April 2022.
On the flip side, any meaningful slide back below the 200-hour SMA could attract fresh buyers near the $23.65 horizontal support. This is followed by the overnight swing low, around the $23.45-$23.40 area, below which the XAG/USD could slide to the $23.10-$23.00 support. The latter should act as a base for spot prices, which if broken decisively might shift the bias in favour of bearish traders.
The subsequent downfall has the potential to drag the XAG/USD further towards the $22.60-$22.55 region. The next relevant support is pegged near the $22.10-$22.00 horizontal zone, which if broken decisively will set the stage for an extension of the recent pullback from a multi-month top.
Silver 1-hour chart
Key levels to watch