[ad_1]
- Silver pulled in some dip buying on Thursday and turned positive for the second day in a row.
- The lineup appears to be tilted in favor of bullish traders and supports the prospect of additional gains.
- A sustained break below the USD 22.25-20 support is required to negate the constructive outlook.
Silver reversed an intraday dip in the $ 22.90 area and moved closer to the one-month highs hit the previous day. The white metal last traded near the $ 23.20 region, up about 0.40% for the day.
The above are a confluence barrier made up of the 200-period SMA on the 4-hour chart and the 50% Fibonacci level of the decline from $ 24.87 to $ 21.42. Any sustained move beyond that is seen as a new trigger for bullish traders and sets the stage for another short-term appreciation move.
Meanwhile, the technical indicators on the hourly chart kept their bullish bias and have just started to gain positive traction on the daily chart. The line-up appears to be firmly aligned in favor of bullish traders and supports the prospect of a possible breakthrough through the aforementioned limit of confluence.
The XAG / USD could then accelerate the momentum towards the 61.8% Fibo. Levels in the $ 23.55-60 range before trying to recapture the $ 24.00 mark. Some follow-up purchases beyond the $ 24.25-30 region would expose resistance from the September monthly swing highs near the $ 24.75-80 zone.
On the flip side, any significant drop below the $ 23.00 round value could be viewed as a buying opportunity and remain limited near the 38.2% Fibo. Level, roughly in the range of USD 22.75. However, continued weakness below it could accelerate the slide back towards the static support at $ 22.25-20.
The latter is consistent with the 23.6% Fibo. Level which, if clearly broken, will shift the bias back in favor of bearish traders. The XAG / USD could then become vulnerable to break below the $ 22.00 mark and slide further towards challenging YTD lows around the $ 21.45-40 region.
Silver 4 hour chart
Technical levels to watch
[ad_2]
