There has been a consecutive increase in buying interest for silver over the past two days, with the XAGUSD trading at 22.842. This suggests that silver is likely to gain more value in the near future.

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• Silver attracts some buying for the second straight day and seems poised to appreciate further.

The pair currently trades last at 22.842.

The previous day high was 23.01 while the previous day low was 22.35. The daily 38.2% Fib levels comes at 22.76, expected to provide support. Similarly, the daily 61.8% fib level is at 22.61, expected to provide support.

Silver gains some positive traction for the second successive day on Friday and climbs back closer to over a one-week top touched the previous day. The white metal currently trades around the $22.85 region, up just over 0.80% for the day, and seems poised to build on its steady intraday ascent amid a modest US Dollar (USD) weakness.

From a technical perspective, the emergence of fresh buying and a sustained move back above the $22.70 confluence resistance add credence to the positive outlook. The said barrier comprises the 200-hour Simple Moving Average (SMA) and the top end of a descending trend channel extending from the August 8 high, which, in turn, should now act as immediate strong support. Some follow-through selling below the daily swing low, around the $22.65 region, however, will negate the positive bias and prompt aggressive selling around the XAG/USD.

With oscillators on the daily chart still holding in the negative territory, Silver might then accelerate the fall back towards testing the multi-month low, around the $22.10 region touched in June. This is closely followed by the $22.00 mark, below which the slide could get extended to the $21.55-$21.50 area en route to the $21.00 round figure. The XAG/USD could then slide to the $20.60 support before dropping to the $20.00 psychological mark.

Meanwhile, technical indicators on hourly charts have been gaining positive traction and support prospects for a further intraday appreciating move. A sustained strength beyond the $23.00 mark will reaffirm the outlook and allow the white metal to challenge the 200-day SMA, currently pegged around the $23.25 region. Some follow-through buying might trigger a fresh bout of a short-covering move and lift the XAG/USD to the $23.60-$23.65 horizontal barrier. The momentum could get extended further and allow bulls to aim to reclaim the $24.00 round figure.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 22.89 at the time of writing. Pair opened at 22.68 and is trading with a change of 0.93 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 23.56, 50 SMA 23.56, 100 SMA @ 24.03 and 200 SMA @ 23.29.

The previous day high was 23.01 while the previous day low was 22.35. The daily 38.2% Fib levels comes at 22.76, expected to provide support. Similarly, the daily 61.8% fib level is at 22.61, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 22.35, 22.02, 21.69
• Pivot resistance is noted at 23.01, 23.34, 23.67

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