Silver Price Analysis: XAG/USD bulls retain control, multi-month top remains in sight

• Silver scales higher for the third successive day and inches back closer to the multi-month top.
• The technical setup favours bullish traders and supports prospects for a further positive move.
• A sustained break below the $22.00 mark is needed to negate the near-term bullish outlook.

Silver gains traction for the third successive day on Friday and sticks to its positive bias through the early North American session. The white metal is currently placed above the $23.00 mark and remains well within the striking distance of its highest level since late April touched on Monday.

From a technical perspective, this week’s goodish rebound from the $22.00 round figure adds credence to the recent bullish breakout through the very important 200-day SMA. Furthermore, positive oscillators on the daily chart support prospects for a further near-term appreciating move for the XAG/USD.

That said, bulls might wait for a move beyond the multi-month top, near the mid-$23.00s, before placing fresh bets. The XAG/USD might then accelerate the upward trajectory and aim to reclaim the $24.00 round figure. The momentum could get extended towards the next relevant hurdle near the $24.50 area.

On the flip side, the daily swing low, just below the $23.00 mark, now seems to protect the immediate downside. This is followed by the 200-hour SMA, around the $22.40-$22.35 region. Any subsequent fall might continue to find decent support and attract fresh buyers near the $22.00 round-figure mark.

The latter should act as a pivotal point, which if broken decisively might negate the positive outlook and shift the bias in favour of bearish traders. The XAG/USD would then turn vulnerable to challenge the technical significant 200-day SMA support, currently pegged around the $21.25 area.

Silver 1-hour chart

Key levels to watch