Silver Price Analysis: XAG/USD recovers further from one-week low, retakes $23.00 mark

• Silver attracts fresh buyers on Thursday and snaps a three-day losing streak to over a one-week low.
• The mixed technical setup warrants caution for bulls and before positioning for any further move-up.
• Acceptance below the 38.2% Fibo. might prompt technical selling and pave the way for deeper losses.

Silver (XAG/USD) builds on the previous day's bounce from the vicinity of mid-$22.00s, or over a one-week low and scales higher through the early part of the European session on Thursday. The white metal, for now, seems to have snapped a three-day losing streak and currently trades around the $23.00 round figure, up nearly 1% for the day.

From a technical perspective, the XAG/USD has been showing some resilience below the 38.2% Fibonacci retracement level of the May-October slide. Moreover, oscillators on the daily chart are holding in the positive territory and support prospects for a further appreciating move. That said, any subsequent move up is more likely to confront stiff resistance near the $23.30-$23.40 confluence, comprising the 50% Fibo. level, the 100-day and 200-day Simple Moving Averages (SMAs).

This is followed by the $23.70-$23.75 strong horizontal barrier, above which a bout of a short-covering move could lift the XAG/USD towards the $24.00 mark, which coincides with the 61.8% Fibo. level. Some follow-through buying will expose a descending trend-line hurdle extending from the May high, currently pegged around the $24.20 region. A convincing breakout through the latter will be seen as a fresh trigger for bullish traders and set the stage for some meaningful upside.

On the flip side, the 38.2% Fibo. level, around the $22.75 area, now seems to protect the immediate downside ahead of the overnight swing low, near the $22.55 zone. Failure to defend the said support levels might prompt some technical selling and drag the XAG/USD to the $22.30-$22.25 horizontal resistance breakpoint now turned support. The downward trajectory could get extended further towards the $22.00 round-figure mark, representing 23.6% Fibo. level.

Silver daily chart

Technical levels to watch