Silver faced rejection near the 24.00 mark snapped two successive days
Silver struggled to capitalize on its gains recorded over the past two trading sessions and once again started retreating from the vicinity of the $24.00 round-figure mark on Friday. The XAG/USD remained on the defensive through the European session and was last seen trading near the daily low, around the $23.75 region. Technical indicators on the daily chart are holding in the positive territory and still far from being in the overbought zone. This set-up seems tilted in favor of bullish traders and supports prospects for a further near-term appreciating move, though repeated failures near the aforementioned handle warrant some caution. Hence, it will be prudent to wait for sustained strength beyond the $24.00 mark before positioning for a move towards testing the very important 200-day SMA hurdle, near the $24.25 region. This coincides with a downward sloping trend-line resistance, extending from July 2021 swing high, and should act as a pivotal point for the XAG/USD.
Some follow-through buying, leading to a subdued move beyond the YTD high, around the $24.70 region, will be seen as a fresh trigger for bulls. The XAG/USD might then accelerate the move and aim to reclaim the key $25.00 psychological mark. The momentum could get extended towards November 2021 high, around the $25.35-$24.40 region. On the flip side, any meaningful pullback is likely to find decent support near the $23.30 region. This is followed by the weekly low, around the $23.10-$23.05 area. Failure to defend the said support levels will shift the bias in favor of bearish traders and make the XAG/USD vulnerable to extend the downward trajectory. The next relevant support is pegged near the $22.75 region. Some follow-through selling should pave the way for a further near-term depreciating move towards the mid-$22.00 mark. The XAG/USD could eventually drop to challenge the double-bottom support, around the $21.40 region.