Silver Price Analysis: XAG/USD bulls flirt with $22.55-60 resistance zone, two-week high

• Silver edged higher for the third successive day and climbed to a near two-week high.
• Mixed oscillators on hourly/daily charts warrant caution for aggressive bullish traders.
• A sustained break below the $22.00 is needed to shift the bias back in favour of bears.

Silver built on the post-FOMC recovery from the $21.40 region, or the YTD low touched on Wednesday and edged higher for the third successive day on Friday. The uptick pushed the white metal to a nearly two-week high, around the $22.55-60 resistance zone during the early European session.

The mentioned barrier now coincides with the 100-period SMA on the 4-hour chart, which if cleared decisively would set the stage for a further near-term appreciating move. Oscillators on hourly charts have been gaining positive traction and support prospects for an eventual breakout.

That said, technical indicators on the daily chart – though have recovered from lower levels – are yet to confirm a bullish bias and warrant some caution. This makes it prudent to wait for some follow-through buying beyond positioning for an extension of the ongoing recovery move.

The XAG/USD might then accelerate the momentum towards an intermediate hurdle near the $22.80-85 area en-route the $23.00 round-figure mark. This is followed by resistance near the $23.30-35 region, above which bulls could aim to test the next relevant barrier near the mid-$23.00s.

On the flip side, immediate support is pegged near the $22.30 horizontal level. Any further decline is likely to attract some buying near the $22.00 mark, which if broken will negate the positive bias and turn the XAG/USD vulnerable to restest YTD lows support, around the $21.40 region.

Silver 4-hour chart

Levels to watch