Forex News

Silver Consolidates Near 13-Month Highs of $26, Poised for Further Upside

Published by
Nonhlanhla P Dube
  • Silver is in a bullish consolidation phase, trading in a narrow band around the $26.00 mark, just below its highest level since April 2022.
  • The recent repeated rebounds from the $25.50-$25.40 strong horizontal resistance breakpoint, now turned support, and the subsequent move up favour bullish traders, but the Relative Strength Index (RSI) on the daily chart is already flashing overbought conditions, making it prudent to wait for some near-term consolidation or a modest pullback before positioning for any further appreciating move.
  • The XAG/USD seems poised to prolong its upward trajectory witnessed over the past three sessions and surpass an intermediate hurdle near the $26.25-$26.30 region, with the momentum eventually extending towards testing the March 2022 swing high, just ahead of the $27.00 round-figure mark. Any meaningful pullback is likely to find support near the $25.65-$25.60 region, with the next relevant support pegged near the $23.35-$23.30 confluence.

Silver is currently in a bullish consolidation phase, trading in a narrow band around the $26.00 mark. This is just below its highest level since April 2022, which was touched earlier on Friday.

From a technical perspective, the recent repeated rebounds from the $25.50-$25.40 strong horizontal resistance breakpoint, now turned support, favor bullish traders. The subsequent move up suggests that the XAG/USD is in a strong position. However, the Relative Strength Index (RSI) on the daily chart is already flashing overbought conditions, making it prudent to wait for some near-term consolidation or a modest pullback before positioning for any further appreciating move.

Despite this, the XAG/USD seems poised to continue its upward trajectory seen over the past three sessions and surpass an intermediate hurdle near the $26.25-$26.30 region. The momentum could eventually get extended towards testing the March 2022 swing high, just ahead of the $27.00 round-figure mark.

On the flip side, if there is any meaningful pullback, it is likely to find decent support near the $25.65-$25.60 region. Any subsequent fall towards the $25.00 psychological mark could still be seen as a buying opportunity, with the resistance-turned-support expected to remain limited near the $24.50-$24.40 region. However, a convincing break below this level will negate the positive outlook and make the XAG/USD vulnerable to further weakening below the $24.00 mark.

In terms of support, the next relevant level is pegged near the $23.35-$23.30 confluence, which comprises the 50-day and the 100-day Simple Moving Averages (SMAs). If the XAG/USD were to slide below this level, it could drop to the $23.00 round-figure mark.

Overall, the XAG/USD is currently in a bullish consolidation phase, with technical indicators suggesting a favorable outlook for bullish traders. However, caution is advised, as the RSI is currently showing overbought conditions, and any pullback or consolidation could present a buying opportunity for traders. The outlook for silver prices will be influenced by a range of factors, including market sentiment, global economic conditions, and geopolitical events.

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

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Published by
Nonhlanhla P Dube
Tags: XAG/USD

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