The Silver Seems Poised To Surpass The Overnight Swing High| FXMAG.COM

Silver 1-hour chart

Silver comes under some selling pressure on Friday, though the downside remains cushioned.
The technical setup supports prospects for the emergence of some dip-buying at lower levels.
A sustained break below a trend-line resistance breakout point will negate the positive outlook.

Silver edges lower on the last day of the week and moves further away from over a one-week top, around the $21.65-$21.70 region touched on Thursday. The white metal remains on the defensive through the early European session and is currently placed just below the mid-$21.00s.

From a technical perspective, the XAG/USD, so far, has managed to defend the 200-hour SMA. Against the backdrop of a convincing breakout through a one-week-old descending trend-line resistance on Wednesday, the set-up favours bullish traders and supports prospects for a further near-term appreciating move.

The constructive outlook is reinforced by the fact that oscillators on the daily chart are holding in bullish territory. That said, technical indicators on the 1-hour chart have just started gaining negative traction and warrant some caution amid relatively thin liquidity conditions in the markets.

Nevertheless, the XAG/USD seems poised to surpass the overnight swing high, around the $21.65-$21.70 region, and reclaim the $22.00 mark. This is followed by a five-month high, around the $22.25 zone, above which spot prices could climb to the $22.50-$22.60 area en route to the $23.00 round figure.

On the flip side, the $21.00 mark could act as an immediate support ahead of the ascending trend-line resistance breakpoint, currently around the $20.80 region. A convincing break below the latter could negate the positive outlook and possibly shift the near-term bias in favour of bearish traders.

The XAG/USD might then accelerate the downfall to the $20.60-$20.55 area (weekly low) before eventually dropping to challenge the $20.00 psychological mark. Some follow-through selling might expose the $19.00 round-figure mark, with some intermediate support near the $19.65-$19.60 region.