Silver Price: Traders Gather Pace for Bulls Past the $24.50 Level Until the Next Drive Higher

XAGUSD Price Analysis – October 19

The white metal confirms the move higher early in the European session past the $24.50 level as the upside favoring chart play may propel the quote towards the $25.00 threshold ahead of challenging the monthly top near the $25.55 level. Hopes for a US stimulus deal have risen, weighing on the safe-haven dollar.

Key Levels
Resistance Levels: $30.00, $28.15, $25.56
Support Levels: $23.25, $21.66, $19.65
XAGUSD Long term Trend: Ranging
From a technical point of view, Silver (XAGUSD) may have shown a false breakout from the $24.50 resistance level on the daily chart. The level at $25.56 level may be considered as the nearest resistance, while the 1st and 2nd support are expected to be located at $23.25 and $22.83 levels respectively.

Silver has been appreciating against the US Dollar since the end of July within a rising wedge pattern. Meanwhile, note that the rate could gain support from the ascending trendline support in the $23.50 area during this session. Thus, the silver price could continue to go upwards.
XAGUSD Short term trend: Ranging
On a 4 hour chart, silver might have resumed its sideways trading following a recent rebound. It has formed a consolidation pattern after reaching an ascending trend line drawn from March. The level at $25.56 may be considered as the nearest resistance.

On the contrary, if the XAGUSD is unable to break past the $25.56 level a breakout south could likely occur within the following trading sessions. In this case, the XAGUSD exchange rate could gain support from the horizontal support at the $23.50 level.

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