Monday, October 25, 2021


XAG/USD bulls await a sustained transfer past 100-day SMA

Silver gained some optimistic traction on Monday, albeit lacked any follow-through shopping for. The set-up appears tilted in favour of…

By Staff , in Silver , at October 25, 2021


  • Silver gained some optimistic traction on Monday, albeit lacked any follow-through shopping for.
  • The set-up appears tilted in favour of bullish merchants and helps prospects for additional features.
  • Any significant pullback would possibly nonetheless be seen as a shopping for alternative close to the $24.00 mark.

Silver edged increased on the primary day of a brand new buying and selling week, albeit struggled to capitalize on the transfer and remained capped close to the 100-day SMA resistance round mid-$24.00s.

From a technical perspective, final week’s sustained energy past a short-term descending trend-line resistance validated an inverted head and shoulders bullish breakout. A subsequent transfer and acceptance above the 38.2% Fibonacci degree of the $28.75-$21.42 downfall helps prospects for extra features.

The constructive set-up is strengthened by bullish technical indicators on the each day chart, that are nonetheless removed from being within the in a single day territory. Therefore, some follow-through transfer past the $24.80-85 area, in the direction of reclaiming the important thing $25.00 psychological mark, stays a definite chance.

The latter coincides with the 50% Fibo. degree, which if cleared decisively ought to set the stage for an extension of the appreciating transfer. The XAG/USD might then climb to an intermediate hurdle close to the $25.55-60 area earlier than finally darting in the direction of the $26.00 mark, or the 61.8% Fibo. degree.

On the flip facet, any significant pullback would possibly proceed to draw some shopping for close to the $24.00 mark, which now appears to behave as a powerful base for the XAG/USD. Failure to defend the talked about help would possibly immediate some technical promoting and speed up the corrective slide in the direction of mid-$23.00s.

That is intently adopted by the $23.20-15 confluence help, comprising of the descending trend-line resistance breakpoint and the 23.6% Fibo. degree. A convincing break beneath will shift the bias in favour of bearish merchants and expose the following related help close to mid-$22.00s.

Silver each day chart

fxsoriginal

Technical ranges to observe

 



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