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- Silver attracted dip buying near the weekly trading range, roughly in the $ 23.80-75 range.
- The area-specific price action represents the formation of a rectangle that indicates indecision.
- Mixed technical indicators on hourly / daily charts require caution before placing aggressive bets.
Silver picked up some positive momentum again on the last day of the week, making up for some of the previous day’s losses. The commodity held its bid tone during the first half of European trading hours, most recently hovering around the $ 24.00 mark.
Looking at the bigger picture, the XAG / USD has been oscillating in a range since the beginning of this week. The price action represents the formation of a rectangle on short-term charts, indicating that traders are indecisive about the next segment of a directional move.
In the meantime, the technical indicators on the hourly charts have picked up again, but have yet to confirm a bullish trend on the daily chart. This, in turn, makes it advisable to wait for a convincing breach of the trading range before placing aggressive bets.
From the current levels, any subsequent positive move could continue to meet stiff resistance near the USD 24.20-25 region. This is followed by the 200-period SMA and resistance marked by the 61.8% Fibonacci level of the drop from $ 26.00 to $ 22.17 around the $ 24.50 area.
Any sustained move beyond that is seen as a new trigger for bullish traders and paves the way for another short-term appreciation move. The XAG / USD could then accelerate momentum towards the key psychological level of USD 25.00 on the way to the next hurdle near the USD 25.35-40 region.
On the flip side, the lower bound of the weekly trading range around the $ 23.80-75 region should continue to protect the immediate downside. Some follow-up sales below the 38.2% Fibo. Levels around the $ 23.60 region could pull XAG / USD towards the $ 23.00 mark or 23.6% Fibo.
Silver 4 hour chart
Technical levels to watch
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