Silver rises a little on Friday but doesn’t continue over $24.00. Bullish traders are favored by the technical setup, which also provides opportunities for further gains. The optimistic picture will be destroyed with a strong breach under trend-channel support.
In the Asian session on Friday, silver makes gains on the previous day’s decent recovery from the $23.15 region or a two-week low. However, silver finds it difficult to acquire traction or maintain it above the $24.00 level, and it has already partially given up some of its small intraday gains.
Technically speaking, the bottom end of an ascending channel that has been in place for more than a month served as support for the XAG/USD on Thursday. The following uptick indicates that this week’s decline from the $24.50 resistance area has reached its conclusion. Additionally, oscillators on the hourly charts have resumed their upward trend and barely manage to stay in the bullish zone on the daily chart.
The aforementioned technical situation favours the possibility of a continued upward movement, but aggressive bullish traders should exercise care given the absence of follow-through purchasing. The XAG/USD still seems prepared to retest the multi-month top, at $24.50, before attempting to overcome the trend-channel resistance. The latter is now valued slightly over the psychological $25.00 threshold.
On the 4-hour chart, the 200-period SMA at $23.55 guards against the near-term downside on the other hand. The overnight swing low, at $23.15, and the trend-channel support, in the $23.40-$23.35 region, are closely behind this. The XAG/USD pair will be more susceptible to weakness below the $23.00 level if there is a clear breach below the aforementioned support levels, which will be considered a new trigger for bearish traders.
Before the XAG/USD finally dips to the $22.10-$22.00 area, the following pertinent support is set around the $22.60-$22.55 region. The latter indicates a static resistance breakpoint and could, at least temporarily, serve to prevent any additional losses.