Silver Price Analysis: XAG/USD pares intraday losses, down little around $25.00 mark
- Silver managed to recover a part of its intraday losses, though remained on the defensive.
- The technical set-up favours bulls and supports prospects for a further appreciating move.
- A sustained break below mid-1.2400s is needed to negate the near-term positive outlook.
Silver witnessed some selling on the last day of the week, though lacked any follow-through. The white metal has now pared its intraday losses and was last seen trading around the 50% Fibonacci level of the $28.75-$21.42 downfall, just above the key $25.00 psychological mark.
Given this week's sustained breakout through 100-day SMA/38.2% Fibo. confluence barrier, a subsequent strength beyond the mid-$24.00s favours bullish traders. This, along with the emergence of some dip-buying on Friday, supports prospects for an extension of the appreciating move.
Apart from this, the emergence of some dip-buying on Friday and bullish oscillators on the daily chart further adds credence to the constructive outlook. Hence, a follow-through move towards the $25.55-60 intermediate hurdle, en-route the $26.00 mark, remains a distinct possibility.
The latter coincides with the 61.8% Fibo. level should act as a strong resistance amid absent relevant fundamental catalyst. That said, a convincing breakthrough will be seen as a fresh trigger for bullish traders and pave the way for additional near-term gains for the XAG/USD.
On the flip side, any meaningful corrective pullback might continue to attract some dip-buying and remain limited near the $24.50 resistance breakpoint. Failure to defend the mentioned support could turn the XAG/USD vulnerable to accelerate the slide towards the $24.00 mark.
Some follow-through selling below the $23.70 area will shift the bias in favour of bearish traders and set the stage for deeper losses, towards the $23.00 mark. The next relevant support is pegged near mid-$22.00s, below which the XAG/USD could slide to YTD lows, around the $21.40 area.
Silver daily chart
Technical levels to watch