Silver Price Analysis: XAG/USD bulls have the upper hand near $26.00, 13-month top

• Silver consolidates its recent gains to a 13-month high touched earlier this Friday.
• The setup favours bulls and supports prospects for a further appreciating move.
• A convincing break below $24.50-40 support is needed to negate the positive bias.

Silver enters a bullish consolidation phase and oscillates in a narrow trading band around the $26.00 round-figure mark, just below its highest level since April 2022 touched earlier this Friday.

From a technical perspective, the recent repeated rebounds from the $25.50-$25.40 strong horizontal resistance breakpoint, now turned support, and the subsequent move up favours bullish traders. That said, the Relative Strength Index (RSI) on the daily chart is already flashing overbought conditions, making it prudent to wait for some near-term consolidation or a modest pullback before positioning for any further appreciating move.

Nevertheless, the XAG/USD seems poised to prolong its upward trajectory witnessed over the past three sessions and surpass an intermediate hurdle near the $26.25-$26.30 region. The momentum could eventually get extended towards testing the March 2022 swing high, just ahead of the $27.00 round-figure mark.

On the flip side, any meaningful pullback now seems to find decent support near the $25.65-$25.60 region. Any subsequent fall towards the $25.00 psychological mark could still be seen as a buying opportunity and remain limited near the $24.50-$24.40 resistance-turned-support. A convincing break below the latter will negate the positive outlook and make the XAG/USD vulnerable to weaken further below the $24.00 mark.

The next relevant support is pegged near the $23.35-$23.30 confluence, comprising the 50-day and the 100-day Simple Moving Averages (SMAs), below which the XAG/USD could slide to the $23.00 round-figure mark.

Silver daily chart

Key levels to watch