Silver Price Analysis: XAG/USD rallies beyond 100-hour EMA, eyes $18.90-$19.00 barrier
- Silver catches fresh bids on Thursday and pushes through the 100-hour EMA resistance.
- Some follow-through buying beyond the weekly high will set the stage for further gains.
- A convincing break below the $18.00 pivotal support will pave the way for further losses.
Silver attracts some buying near the $18.25-$18.20 area on Thursday and continues gaining traction through the first half of the European session. The XAG/USD pushes through the 100-hour EMA barrier and hits a fresh daily high, around the $18.70-$18.75 area in the last hour.
The XAG/USD has now moved to the top end of its weekly trading range, around the $18.90-$19.00 region. Some follow-through buying should pave the way for a further near-term appreciating move towards the next relevant resistance near the $19.70-$19.80 supply zone.
This is closely followed by the $20.00 psychological mark, which if cleared decisively will be seen as a fresh trigger for bulls. The XAG/USD could then climb beyond the $20.50 intermediate hurdle and aim to reclaim the $21.00 mark, coinciding with the 200-day EMA.
On the flip side, the $18.50-$18.40 zone now seems to protect the immediate downside ahead of the daily low, around the $18.25-$18.20 region, and the $18.00 pivotal support. A convincing break below the latter will negate any positive bias and make the XAG/USD vulnerable.
The subsequent downfall has the potential to drag spot prices further towards the YTD low, around the $17.55 area touched in September. The downward trajectory could eventually drag the XAG/USD to the next relevant support near the $17.00 round-figure mark.
Silver 1-hour chart
Key levels to watch