XAG/USD bulls maintain control near multi-month high, about $24.50
For the third day in a row, silver continues to rise, edging ever closer to its all-time high from earlier this month. Going into the European session, the white metal maintains its intraday gains. Bulls are now waiting to place new bets until a move beyond the $24.50-$24.55 region has been made.
Technically speaking, the 4-hour chart's bounce from the area of the 200-period SMA last week and further strength above $24.00 were considered a new trigger for bullish traders. On the daily chart, oscillators are also comfortably in the positive range and are still a long way from the overbought area. This in turn strengthens the likelihood of the appreciating move continuing.
On hourly charts, the RSI (14) oscillates around the 70 level, which calls for some caution. The potential for a future breakout through the $24.50-$24.55 range and a subsequent move towards reclaiming the $25.00 psychological mark for the first time since April 2022 still appear to be present. A small amount of follow-through buying might push the XAG/USD above the $25.35–$25.40 barrier.
The $24.10-$24.00 resistance breakpoint, on the other hand, appears to shield the immediate downside. Any additional decline is more likely to draw new buyers and be contained close to the 200-SMA on the 4-hour chart, which is now in the $23.30-$23.25 range. The $23.00 round figure comes next, and if it is convincingly broken, it will cancel out the positive view and flip the near-term bias in favor of bearish traders.
The XAG/USD might then continue to deteriorate approaching the $22.60-$22.55 area and the following important support located close to the $22.10-$22.00 region.