Silver Price Analysis: XAG/USD edges higher to mid-$24.00s, 200-hour SMA could cap the upside

• Silver gained some traction on Thursday and is now looking to build on the overnight recovery.
• Repeated failures near the $25.00 mark and the 200-hour SMA resistance favours bearish traders.
• Sustained break below the $24.00 round figure will set the stage for additional near-term losses.

Silver attracted some dip-buying near the $24.25 region on Thursday and climbed to a fresh daily high during the mid-European session. The white metal was last seen trading around mid-$24.00s and is now looking to build on the previous day's bounce from over a one-week low.

From a technical perspective, the recent repeated failures near the $25.00 psychological mark and the emergence of fresh selling around the 200-hour SMA favours bearish traders. The latter, currently around the $24.65-$24.70 region, should continue to act as an immediate barrier.

Given that technical indicators on hourly charts have recovered from the negative territory, some follow-through buying might prompt some short-covering move. The XAG/USD might then aim to surpass the $25.00 mark and accelerate the momentum towards the $25.35-$25.40 resistance zone. Bulls might eventually aim to test the next relevant hurdle around the $25.75-$25.80 area and push the XAG/USD further towards the $26.00 round-figure mark.

On the flip side, the $24.25-$24.20 region now seems to protect the immediate downside ahead of the $24.00 level. The said handle coincides with the very important 200-day SMA, which if broken decisively will set the stage for a further near-term depreciating move. The XAG/USD would then turn vulnerable to accelerate the fall towards the next relevant support near the $23.60 region and slide further to the $23.20-$23.15 support zone.

Silver 1-hour chart

Key levels to watch