Over $24.00, silver finds it difficult to take advantage of its small intraday gains. The technical configuration favors bullish traders and enhances the likelihood of future gains.
A decisive breach below the $23.00 level is required to disprove the optimistic view. On the opening day of a new week, silver builds on Friday’s ok-ish recovery from around the $23.00 level and adds some follow-through impetus. While retreating from a three-day high reached during the first part of the European session, the white metal finds it difficult to gain acceptance above the $24.00 round number.
On the 4-hour chart of the XAG/USD, the 100-period SMA is successfully held around the $23.70 level, and the technical setup continues to favor bullish traders. Positive oscillators on daily/hourly charts support the forecast. Despite this, it will be wise to hold off on positioning for additional appreciation until the price maintains a prolonged strength over the $24.00 level.
The multi-month high, reached last week in the $24.50-$24.55 range, is followed by an intermediate barrier close to the $24.25 region. The latter will be followed by some more purchasing, which will act as a new catalyst for optimistic traders and push spot prices even higher in the direction of regaining the $25 psychological level for the first time since April 2022.
On the other hand, the $23.20-$23.10 range has already solidified as an immediate support level in front of the $23.00 round number. To reach the next significant support close to the $22.10-$22.00 horizontal zone, a strong break below might push the XAG/USD toward the $22.60-$22.55 range. Failure to defend the latter will signal a breakdown and pave the way for another move toward depreciation shortly.
4-hour silver chart