- Silver attracted some dip-buying on Thursday and turned positive for the second straight day.
- The set-up seems tilted in favour of bullish traders and supports prospects for additional gains.
- A sustained break below the $22.25-20 support is needed to negate the constructive outlook.
Silver reversed an intraday dip to the $22.90 area and inched back closer to near one-month tops touched in the previous day. The white metal was last seen trading near the $23.20 region, up around 0.40% for the day.
The mentioned are marks a confluence hurdle comprising of 200-period SMA on the 4-hour chart and the 50% Fibonacci level of the $24.87-$21.42 downfall. A sustained move beyond will be seen as a fresh trigger for bullish traders and set the stage for a further near-term appreciating move.
Meanwhile, technical indicators on hourly charts maintained their bullish bias and have just started gaining positive traction on the daily chart. The set-up seems tilted firmly in favour of bullish traders and supports prospects for an eventual break through the mentioned confluence barrier.
The XAG/USD might then accelerate the momentum towards the 61.8% Fibo. level, around the $23.55-60 area, before aiming to reclaim the $24.00 mark. Some follow-through buying beyond the $24.25-30 region would expose September monthly swing highs resistance near the $24.75-80 zone.
On the flip side, any meaningful slide below the $23.00 round figure might be seen as a buying opportunity and remain limited near the 38.2% Fibo. level, around the $22.75 region. That said, sustained weakness below might accelerate the slide back towards the $22.25-20 static support.
The latter coincides with the 23.6% Fibo. level, which if broken decisively will shift the bias back in favour of bearish traders. The XAG/USD might then turn vulnerable to break below the $22.00 mark and slide further towards challenging YTD lows, around the $21.45-40 region.
Silver 4-hour chart
Technical levels to watch