Silver Price Analysis: XAG/USD seems poised to test ascending channel hurdle, near $25.00

• Silver edges higher on Friday, albeit lacks follow-through beyond the $24.00 mark.
• The technical setup favours bullish traders and supports prospects for further gains.
• A convincing break below the trend-channel support will negate the positive outlook.

Silver builds on the previous day's goodish rebound from the $23.15 area, or a two-week low and edges higher during the Asian session on Friday. The white metal, however, struggles to find acceptance or extend the momentum beyond the $24.00 mark and has now trimmed a part of its modest intraday gains.

From a technical perspective, the XAG/USD on Thursday managed to defend support marked by the lower end of over a one-one-month-old ascending channel. The subsequent move-up suggests that this week's pullback from the $24.50 resistance zone has run its course. Moreover, oscillators on the daily chart just manage to hold in the bullish territory and have again started gaining positive traction on hourly charts.

The aforementioned technical setup supports prospects for a further appreciating move, though the lack of follow-through buying warrants some caution for aggressive bullish traders. Nevertheless, the XAG/USD still seems poised to retest the multi-month peak, around the $24.50 area, before eventually aiming to challenge the trend-channel resistance. The latter is currently pegged just ahead of the $25.00 psychological mark.

On the flip side, the 200-period SMA on the 4-hour chart, around the $23.55 region, seems to protect the immediate downside. This is closely followed by the trend-channel support, near the $23.40-$23.35 zone and the overnight swing low, around the $23.15 area. A convincing break below the said support levels will be seen as a fresh trigger for bearish traders and make the XAG/USD vulnerable to weaken below the $23.00 mark.

The next relevant support is pegged near the $22.60-$22.55 region before the XAG/USD eventually drops to the $22.10-$22.00 zone. The latter represents a static resistance breakpoint and might help limit any further losses, at least for the time being.

Silver 4-hour chart

Key levels to watch