Silver Price Analysis: XAG/USD hangs near weekly low, bulls losing the grip below $24.00
- Silver attempts a modest recovery from the weekly low touched earlier this Wednesday.
- Mixed oscillators setup warrants some caution before placing aggressive directional bets.
- A convincing break below channel support is needed to support prospects further losses.
Silver bounces off the weekly low touched during the Asian session on Wednesday and is currently placed in neutral territory, just below the $24.00 round-figure mark.
From a technical perspective, the recent price action witnessed over the past month or so constitutes the formation of an ascending channel, pointing to a short-term bullish trend. Moreover, the XAG/USD, so far, has managed to hold its neck comfortably above the 200-period SMA on the 4-hour chart. This, in turn, favours bullish traders and supports prospects for additional near-term gains.
That said, oscillators on the daily chart have been losing traction and have just started drifting in the negative territory on the 4-hour chart. Hence, any intraday move-up is more likely to confront some resistance near the $24.30 area, which is followed by the multi-month peak, around the $24.50 area. Bulls might wait for sustained strength beyond the said barriers before placing fresh bets.
The XAG/USD might then climb towards challenging the top end of the aforementioned trend channel, currently around the $24.80-$24.85 region. Some follow-through buying beyond the $25.00 psychological mark will mark a fresh breakout and pave the way for a further near-term appreciating move. This, in turn, could lift the white metal to the next relevant hurdle near the $25.35-$25.40 zone.
On the flip side, the 200-period SMA on the 4-hour chart, currently around the $23.45 region, is likely to protect the immediate downside ahead of the trend-channel support, near the $23.30-$23.25 area. A convincing break below the latter might turn the XAG/USD vulnerable to weaken further below the $23.00 mark and fall to the $22.60-$22.55 support en route to the $22.10-$22.00 region.