- The price of silver oscillates in a tight range during the first half of the European session.
- The formation of a rising channel points to a consolidated short-term uptrend.
- A convincing break below the 100 hourly SMA is needed to invalidate the bullish setup.
The silver price (XAG/USD) lacks any firm direction on Wednesday, bouncing between tepid gains and minor losses during the first half of the European session. XAG/USD is currently hovering around the $23.70 area, well below its highest level since late April hit on Tuesday.
From a technical point of view, the recent move higher in the last week has been through a rising channel. This points to a well-established short-term uptrend. Furthermore, the technical oscillators on the hourly chart have broken out of the overbought zone and support the prospects for further gains. That being said, the RSI (14) on the daily chart is still poised to break above the 70 level and warrants some caution for the bulls.
However, any further decline is likely to find good support near the lower bound of the mentioned trend channel, currently around $23.00. This is closely followed by the 100 hour SMA near the $23.30-$23.25 region, which if broken decisively will negate the positive outlook and shift the short-term bias in favor of the bears. XAG/USD could then accelerate the decline towards the $23.00 level.
The next relevant support lies just below the $23.00 level, which coincides with the 200 hourly SMA. A bit of continuation selling will expose the $22.55 support zone before XAG/USD finally drops to the $22.00 round level. This last level should act as a key pivot point and solid foundation for XAG/USD, at least for now.
On the other hand, the $24.00 level now becomes an immediate hurdle, above which XAG/USD is likely to break the multi-month high around the $24.15 area and test resistance. of the ascending channel. A sustained strengthening above said barrier, currently around the $24.35 zone, will be seen as a new trigger for bulls and allow the white metal to recapture the psychological $25.00 level.
Silver 1 hour chart
silver key levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
