- Silver reverses an intraday dip to the $22.55 area and climbs back closer to the overnight swing high.
- The technical setup favours bullish traders and supports prospects for a further appreciating move.
- Any meaningful pullback might attract some di-buyers and remains limited near the $22.00 mark.
Silver attracts fresh buyers near the $22.55 region on Thursday and steadily climbs back closer to the overnight swing high during the first half of the European session. The white metal is currently placed around the $22.70-$22.75 area and seems poised to build on its intraday ascent.
This week’s repeated failures to break through the $22.00 mark and the overnight goodish rebound from the vicinity of the 200-hour SMA favours bullish traders. Moreover, positive technical indicators on daily/hourly charts are still away from being in the overbought zone and add credence to the constructive outlook for the XAG/USD.
This, in turn, supports prospects for a move back towards reclaiming the $23.00 round-figure mark. The momentum could further get extended and allow the XAG/USD to challenge the multi-month peak, around the $23.50-$23.55 zone touched earlier this week. Some follow-through buying should pave the way for an extension of the upward trajectory.
On the flip side, the daily swing low, around the $22.55 region, should protect the immediate downside. Any subsequent fall might continue to find decent support near the 200-hour SMA, currently around the $22.15-$22.10 zone. This is followed by the $22.00 mark, which if broken will negate the positive outlook for the XAG/USD.
The next relevant support is pegged near the $21.40 region ahead of the technical significant 200-day SMA, around the $21.25 area, and the $21.00 mark. The latter should act as a strong base for spot prices. A convincing break below will shift the bias in favour of bearish traders and prompt aggressive technical selling around the XAG/USD.