XAG / USD bulls expect sustained move above 100-day SMA

• Silver jumps to a two-week high on Monday, though it lacks continuation.
• The setup favors the bulls and supports the prospects for further gains.
• Dips below the $ 24.00 level could now be seen as an opportunity for the bulls.

Silver has built on last week’s good rebound from lows of more than two weeks and gained some traction on Monday. The rally has pushed XAG / USD to a two-week high, around the $ 24.30-40 region, although the bulls have struggled to capitalize on the move beyond the 100-day SMA.

Looking at the bigger picture, the recent pullback from the $ 24.80-85 region found decent support and stopped near the $ 23.00 level. This level should now act as a key turning point for investors and help determine the next directional move for XAG / USD.

The bullish technical indicators on the 1-hour and daily charts support the prospects for an eventual breakout through the 100-day SMA barrier. This will set the stage for a move towards the intermediate hurdle of $ 24.55 en route to October’s monthly highs, around the $ 24.80 area.

On the other hand, any significant pullback below the $ 24.00 level could be seen as a buying opportunity and remain capped near the $ 23.70 level. This is followed by the support near $ 23.50, below which the XAG / USD could accelerate the decline towards the $ 23.00 level.

Subsequent sustained weakness would make XAG / USD vulnerable to test the next relevant support near $ 22.50 before finally breaking below the $ 22.00 level. The downward trajectory could extend to yearly lows around the $ 21.40 area touched in September.

Silver daily chart

Silver technical levels