Silver Price Analysis: XAG/USD bulls hold the upper hand near $24.00 mark, multi-week tops

• Silver caught some fresh bids on Wednesday and inched back closer to multi-week tops.
• The set-up favours bullish traders and supports prospects for additional near-term gains.
• A sustained break below the $23.00 mark is needed to negate the constructive outlook.

Silver attracted some dip-buying on Wednesday and inched back closer to the $24.00 round-figure mark during the first half of the European session. This is closely followed by six-week tops, around the $24.10-15 region touched on Tuesday and the 38.2% Fibonacci level of the $28.75-$21.42 downfall.

Given the overnight sustained move beyond a downward-sloping trend-line extending from July monthly swing highs, the near-term bias remains tilted in favour of bullish traders. The positive outlook is reinforced by bullish technical indicators, which are still far from being in the overbought zone.

This comes on the back of the recent bullish breakout through an inverted head and shoulders neckline and supports prospects for additional gains. Hence, a subsequent strength beyond the $24.15-20 area, towards the next relevant hurdle around the $24.75-80 region, remains a distinct possibility.

The momentum could further get extended and allow the XAG/USD to aim back to reclaim the key $25.00 psychological mark. The latter nears the 50% Fibo. level, which if cleared decisively will be seen as a fresh trigger for bullish traders and pave the way for a further near-term appreciating move.

On the flip side, the descending trend-line resistance breakpoint, around the $23.60-55 region, now seems to protect the immediate downside ahead of the 23.6% Fibo. level, around the $23.20-15 area. This is followed by the $23.00 round-figure mark, which should act as a strong base for the XAG/USD.

A convincing break below will negate the near-term positive outlook, instead shift the bias in favour of bearish traders and prompt aggressive technical selling. Some follow-through weakness below the $22.75-70 region will reaffirm the negative bias and turn the XAG/USD vulnerable to slide further.

Silver daily chart

Technical levels to watch