- Today's upside move in silver prices (XAGUSD) by more than 4% makes a price move towards $24 a realistic target for bulls.
Silver price on the XAGUSD chart showed a bright start to December, following the gold prices lead as it burst to its best daily gain since 5 November. Not even worse-than-expected figures announced by the Institute of Supply Managers for their monthly manufacturing PMI could dampen silver buyers’ moods.
ISM Manufacturing PMI came in at 57.5, which was lower than the previous month’s reading of 59.3 and lower than the market expectation of 57.5. However, silver prices shook off the downbeat data and posted a 4.47% increase on the day, which still holds at the time of writing.
Technica Levels to Watch
Yesterday’s pinbar on the 22.387 daily chart support halted the breakdown move before it got to the projected price point of 20.734, where the 200-day moving average lies. This pinbar provided the impetus for today’s strong bid on silver prices around 22.58. The daily candle has violated the 23.164 resistance and is pushing towards the 24.00 psychological resistance level. Further resistance lies at 24.569, where the lower boundary of the consolidation wedge could meet the horizontal price level.
On the other hand, the downside’s resumption could come from renewed selling into any of the rally points mentioned above, targeting 21.637 and potentially 20.734. Support targets at 19.574 and 18.932 may also become relevant if a decline resumes.
XAGUSD Daily Chart
