Silver Price Analysis: XAG/USD bulls have the upper hand above 23.6% Fibo./100-period SMA

• Silver lacks any firm intraday direction and oscillates in a narrow range on Thursday.
• The technical setup favours bulls and supports prospects for further near-term gains.
• A convincing break below the $24.00 mark is needed to negate the positive outlook.

Silver struggles to capitalize on the overnight goodish rebound from the $24.65 region, or a one-and-half-week low, and seesaws between tepid gains/minor losses through the early European session on Thursday. The white metal, however, manages to hold its neck above the $25.00 psychological mark and for now, seems to have stalled the recent pullback from over a one-year high, around the $26.10 area touched last week.

Technical indicators on the daily chart, meanwhile, are holding comfortably in the positive territory and have already eased from the overbought zone. Adding to this, the overnight recovery from the 23.6% Fibonacci retracement level of the recent rally from the YTD low favours bullish traders and supports prospects for additional gains. Some follow-through buying beyond the $25.20-$25.25 area will reaffirm the positive outlook and lift the XAG/USD further towards the $25.80-$25.85 hurdle en route to the $26.00 mark.

On the flip side, the 23.6% Fibo., around the $24.65 area, now coincides with the 100-period Simple Moving Average (SMA) on the daily chart and should act as a pivotal point. This is closely followed by the $24.40-$24.30 strong horizontal resistance breakpoint, now turned support, which if broken could drag the XAG/USD towards the $24.00 mark en route to the 38.2% Fibo. level, around the $23.75 area.

Silver 4-hour chart

Key levels to watch