header banner

The 200-day SMA and the 618% Fibo are being approached by XAG/USD in the analysis of silver prices hurdle at confluence

  • Silver turns positive for the fourth straight day and climbs back closer to a multi-week high.
  • The technical setup seems tilted in favour of bulls and supports prospects for further gains.
  • Bulls might wait for a move beyond the $23.30-$23.35 confluence before placing fresh bets.

Silver (XAG/USD) reverses an intraday dip to the $22.85 area and builds on its intraday upward trajectory through the first half of the European session on Friday. The white metal currently trades around the $23.20 region, up nearly 0.50% for the day, and seems poised to prolong its recent goodish recovery from a seven-month low touched on October 3.

From a technical perspective, the emergence of some dip-buying near the 50% Fibonacci retracement level of the August-October downfall validates the constructive outlook for the XAG/USD. Furthermore, oscillators on the daily chart have just started gaining positive traction and support prospects for a further appreciating move. That said, it will still be prudent to wait for a sustained move beyond the $23.30-$23.35 confluence hurdle – comprising the 100-day and the 200-day Simple Moving Averages (SMAs) and the 61.8% Fibo. level – before placing fresh bullish bets.

The XAG/USD might then climb to the next relevant resistance near the $23.75-$23.80 region (September 22 high) and then aim to reclaim the $24.00 round figure for the first time since early September. The positive momentum could get extended further towards the $24.30-$24.35 resistance zone en route to the August monthly swing high, around the $25.00 psychological mark.

On the flip side, the 50% Fibo. level, around the $22.85 region, might continue to protect the immediate downside ahead of the $22.70-$22.65 horizontal support. This is followed by the weekly trough, around the $22.40-$22.35 zone, which nears the 38.2% Fibo. level and should act as a key pivotal point. A convincing break below might shift the near-term bias back in favour of bearish traders and prompt aggressive technical selling around the XAG/USD.

Silver might then turn vulnerable to accelerate the fall further below the $22.00 mark, towards the 23.6% Fibo. level, around the $21.75 area. The subsequent downfall has the potential to drag the XAG/USD to the $21.35-$21.30 intermediate support en route to the $21.00 mark and back towards retesting a seven-month low, around the $20.70-$20.65 zone, or a seven-month low touched on October 3.

Silver daily chart

VIDEO: The 200 EMA Confluence Trading Strategy You’ve Been Waiting For
The Secret Mindset


Technical levels to watch

VIDEO: XAG/USD Silver Price Trading: $24 Level Represents a Key Target | Silver Forecast November 6, 2023

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.


Article information

Author: Ian Brown

Last Updated: 1699702562

Views: 747

Rating: 4.3 / 5 (83 voted)

Reviews: 96% of readers found this page helpful

Author information

Name: Ian Brown

Birthday: 1973-06-26

Address: PSC 1135, Box 1246, APO AP 33561

Phone: +4153397411681629

Job: Environmental Scientist

Hobby: Scuba Diving, Crochet, Tennis, Web Development, Sculpting, Ice Skating, Wine Tasting

Introduction: My name is Ian Brown, I am a strong-willed, forthright, priceless, honest, multicolored, dear, capable person who loves writing and wants to share my knowledge and understanding with you.