Silver Price Analysis: XAG/USD bulls once again faced rejection near $24.00 mark

• Silver faced rejection near the $24.00 mark snapped two successive days of the winning streak.
• The technical setup favour bulls, though Friday’s failure warrants caution for aggressive traders.
• A convincing break below the $23.00 round figure is needed to negate the near-term positive bias.

Silver struggled to capitalize on its gains recorded over the past two trading sessions and once again started retreating from the vicinity of the $24.00 round-figure mark on Friday. The XAG/USD remained on the defensive through the first half of the European session and was last seen trading near the daily low, around the $23.75 region.

Technical indicators on the daily chart are holding in the positive territory and still far from being in the overbought zone. This set-up seems tilted in favour of bullish traders and supports prospects for a further near-term appreciating move, though repeated failures near the aforementioned handle warrant some caution.

Hence, it will be prudent to wait for sustained strength beyond the $24.00 mark before positioning for a move towards testing the very important 200-day SMA hurdle, near the $24.25 region. This coincides with a downward sloping trend-line resistance, extending from July 2021 swing high, and should act as a pivotal point for the XAG/USD.

Some follow-through buying, leading to a subdued move beyond the YTD high, around the $24.70 region, will be seen as a fresh trigger for bulls. The XAG/USD might then accelerate the move and aim to reclaim the key $25.00 psychological mark. The momentum could get extended towards November 2021 high, around the $25.35-$24.40 region.

On the flip side, any meaningful pullback is likely to find decent support near the $23.30 region. This is followed by the weekly low, around the $23.10-$23.05 area. Failure to defend the said support levels will shift the bias in favour of bearish traders and make the XAG/USD vulnerable to extend the downward trajectory.

The next relevant support is pegged near the $22.75 region. Some follow-through selling should pave the way for a further near-term depreciating move towards the mid-$22.00 mark. The XAG/USD could eventually drop to challenge the double-bottom support, around the $21.40 region.

Silver daily chart

Technical levels to watch