Silver Price Analysis: XAG/USD advances to multi-week top, above 50% Fibo. of August-September fall

• Silver continues scaling higher on Friday and rallies to a nearly three-week high.
• A move beyond the 50% Fibo. might have set the stage for a further move up.
• Any corrective decline is more likely to find support near the $23.30 confluence.

Silver builds on the previous day's solid recovery move from the $22.80 area, or the weekly low, and gains strong follow-through traction on Friday. This marks the third successive day of a positive move, also the fifth in the previous six, and lifts the white metal to a two-and-half-week peak, around the $23.75 region during the early part of the European session.

From a technical perspective, a move beyond the 50% Fibonacci retracement level of the August-September downfall could be seen as a fresh trigger for the XAG/USD bulls. Furthermore, oscillators on the daily chart have just started moving in the positive territory and support prospects for a further appreciating move. Hence, a subsequent strength towards reclaiming the $24.00 round figure, which coincides with the 61.8% Fibol level, looks like a distinct possibility.

Some follow-through buying will set the stage for an extension of the recent rally from an ascending trend line extending from the June swing low. The XAG/USD might then accelerate the momentum beyond the $24.30-$24.35 intermediate hurdle, towards the $25.00 psychological mark, or the August monthly swing high. The next relevant hurdle is pegged near the July peak, around the $25.25 region, which if cleared decisively should pave the way for additional gains.

On the flip side, any meaningful corrective slide now seems to find decent support near the $23.30 confluence, comprising the 200-period Simple Moving Average (SMA) on the 4-hour chart and the 38.2% Fibo. The next relevant support is pegged near the $23.00 round figure, below which the XAG/USD could slide back to retest the $22.30 support, or a nearly one-month low touched last Thursday. A convincing break below will shift the bias in favour of bearish traders.

Silver 4-hour chart

Technical levels to watch