Silver Price Analysis: Silver built on the post-FOMC recovery from the $21.40 region, or the YTD low touched on Wednesday and edgedhigher for the 3rd successive day on Friday. The uptick pushed the white metal to a nearly two-week high, around the $22.55-60 resistance zone during the early European session.
Silver 4 Hour Chart
The mentioned barrier now coincides with the 100-period SMA on the 4-hour chart, which if cleared decisively would set the stage for a further near-term appreciating move. Oscillators on hourlycharts have been gaining positive traction and support prospects for an eventual breakout.
- Silver edged higher for the third successive day and climbed to a near two-week high.
- Mixed oscillators on hourly/daily charts warrant caution for aggressive bullish traders.
- A sustained break below the $22.00 is needed to shift the bias back in favour of bears.
Technical Indicators on the Daily Chart
That said, technical indicators on the daily chart – though have recovered from lower levels – are yet to confirm a bullish bias and warrant somecaution. This makes it prudent to wait for some follow-through buying beyond positioning for an extension of the ongoing recovery move.
Silver Hurdle Near the $22.80—85 Area
The silver might then accelerate the momentum towards an intermediate hurdle near the $22.80-85 area en-route the $23.00 round-figure mark. This is followed by resistance near the $23.30-35 region, above which bulls could aim to test the next relevant barrier near the mid-$23.00s.
On the flip side, immediate support is pegged near the $22.30 horizontal level. Any further decline is likely to attract some buying near the $22.00 mark, which if broken will negate the positive bias and turn the silver vulnerable to retest YTD lows-support, around the $21.40 region.
Silver Metal Bars
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