Silver Price Analysis: XAG/USD Reaches a One-Week High
11 Oct 2023
XAG/USD gains above the $22.00 mark, over a one-week high.
- On Wednesday, silver receives new bids and rises to a peak that has exceeded a week.
- A little caution is advised before positioning for additional gains due to the technical setting.
- Bulls will view a prolonged move above $22.20–30 as a positive trigger.
After a little decline the day before, silver gains momentum and rises to a high of more than a week on Wednesday during the first half of the European session. The white metal currently trades just above the $22.00 mark, up nearly 1% for the day, and looks to build on the recent goodish recovery move from a seven-month low touched last week.
However, any further upward movement is probably going to run into strong resistance close to the horizontal support breakpoint of $22.30-$22.20. The region should serve as a crucial turning point, and if it is successfully overcome, it may ignite a strong short-covering rally that pushes the XAG/USD pair above $23.00. The trend may pick up more steam in the direction of testing the 200-day SMA, which is presently at about $23.35.
SILVER TECHNICAL ANALYSIS DAILY CHART:
Silver is currently trading within an up channel.
Silver is positioned above 5&20 Moving Averages (SMA).
The Relative Strength Index (RSI) is in the buying zone, while the Stochastic oscillator suggests a positive trend.
Immediate Resistance level: 22.19
Immediate support level: 21.70
HOW TO TRADE SILVER
Following a decline, the price of silver found support and is now attempting an upward move. Silver is currently trading near a crucial resistance zone after breaking its previous day’s high; if this zone is broken, more upside is expected.
TRADE SUGGESTION- STOP BUY– 22.38, TAKE PROFIT AT- 23.16, SL AT- 21.87.