Silver Price Analysis: XAG/USD bulls might now aim to test June swing high, around $24.50-55

• Silver climbs beyond the 50% Fibo. Level and touches a one-month high on Thursday.
• The technical setup favours bullish traders and supports prospects for additional gains.
• A convincing break below the 100-day SMA is needed to negate the positive outlook.

Silver builds on the overnight breakout momentum beyond the 100-day Simple Moving Average (SMA) and gains follow-through traction during the Asian on Thursday. The white metal touches a one-month high, around the $24.25 region in the last hour and seems poised to prolong its recent appreciating move witnessed over the past three weeks or so.

Against the backdrop of the previous day's sharp rise, acceptance above the 50% Fibonacci retracement level of the May-June slide could be seen as a fresh trigger for bullish traders. Furthermore, technical indicators n the daily chart have been gaining positive traction and are still far from being in the overbought territory. This, in turn, validates the constructive outlook and suggests that the path of least resistance for the XAG/USD is to the upside.

Hence, a subsequent move towards testing the June monthly swing high, around the $24.50-$24.55 region, coinciding with the 61.8% Fibo. level, now looks like a distinct possibility. A sustained strength beyond the latter will suggest that the corrective slide from over a one-year peak touched in May has run its course and push the XAG/USD towards the $25.00 psychological mark en route to the next relevant hurdle near the $25.50-$25.55 region.

On the flip side, the $24.00 round figure could now act as immediate support ahead of the 38.2% Fibo. level, around the $23.70 region. This is followed by the 100-day SMA, around mid-$23.00s, which should act as a strong base for the XAG/USD. A convincing break below will negate the positive outlook and shift the bias in favour of bearish traders. The white metal might then turn vulnerable to slide back below the $23.00 mark, or 23.6% Fibo.

Silver daily chart

Key levels to watch