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Home Gold Prices Silver Prices Show Modest Recovery, Technical Analysis Suggests Mixed Signals (June 23)

Silver Prices Show Modest Recovery, Technical Analysis Suggests Mixed Signals (June 23)

by anna

Silver (XAG/USD) experienced a slight rebound from its recent three-day low around $29.35 during Monday’s Asian session, finding support ahead of the 50-day Simple Moving Average (SMA). The white metal had previously retreated from the $31.00 mark, a two-week high reached last Friday, struggling to attract substantial buying interest.

Technically, XAG/USD is currently maintaining levels above key SMAs including the 50-day, 100-day, and 200-day, which typically favors bullish sentiment among traders. However, caution is warranted as daily chart oscillators are showing signs of entering negative territory, suggesting a potential need for prudence before anticipating further upward movement.

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In terms of immediate price action, the 50-day SMA near the $29.15 level is likely to serve as initial support, protecting against downside risks before the psychological $29.00 mark. A decisive breach below this support could shift near-term sentiment in favor of bearish traders, potentially leading to a deeper decline towards support levels around $28.30-28.25, followed by a significant target near $28.00. Further downward momentum might extend towards the $27.55 support, with subsequent levels near the $27.00 round figure and the 100-day SMA around $26.90-26.85 coming into play.

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On the upside, immediate resistance is expected at the psychological barrier of $30.00, followed by a broader resistance zone around $30.45-30.50. Breaking above these levels could open the door for a challenge towards the $30.70 supply zone. A sustained move beyond this zone might propel XAG/USD towards testing higher resistance near $31.00 and potentially reaching towards $31.35. Successful breaches above these levels could encourage bulls to target the $32.00 mark and retest the year-to-date peak established in May around $32.50.

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In summary, while silver prices have shown resilience above key SMAs, the technical outlook suggests a cautious approach amid oscillating signals, with pivotal support and resistance levels dictating near-term market sentiment.

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