Silver Price Rises to Nearly Three-Week High - Bulls Advantage, Correction as Buying Opportunity at $24.00

Silver Price Rises to Nearly Three-Week High - Bulls Advantage, Correction as Buying Opportunity at $24.00

According to a report by www.fxstreet.de.com, silver prices have gained for the fourth day in a row, rising to a nearly three-week high on Friday. The technical setup favors the bulls and supports the prospects of further uptrend. A corrective pullback could now be seen as a buying opportunity near the 24.00 round number.

The recent rebound from multi-month ascending trendline support and subsequent rise above the 200-day SMA (Simple Moving Average) and the $24.00 round number have resulted in a new uptrend. The oscillators on the daily chart are showing a positive bias, supporting the prospects of a continuation of the two-week-old uptrend. Some penetration towards the psychological level of $25.00 is therefore quite possible and the momentum could extend further towards the intermediate resistance at $25.25.

On the other hand, any significant correction seems to find good support near the $24.00 level, attracting new buyers. This should help limit the downside near the 200-day SMA in the $23.60 area. However, a convincing break below the latter level could trigger technical selling and leave XAG/USD vulnerable to a retest of trendline support.

Based on this information, silver prices may continue to perform positively in the near future and break the psychological level of $25.00. However, if a convincing break below $23.60 occurs, technical selling could be triggered, leading to a retest of trendline support and accelerating the price towards the support at $22.00. Developments on the financial markets should therefore be carefully monitored in the coming days.