XAG/USD corrects from three-week top, holds above $24.00 mark

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<li><strong>Silver meets with some supply and erodes a part of the overnight gains to a three-week peak.</strong></li>
<li><strong>Extremely overbought RSI on hourly charts prompts traders to lighten some of their bullish bets.</strong></li>
<li><strong>Any subsequent slide might still be seen as a buying opportunity and is likely to remain limited.</strong></li>
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<p>Silver comes under some selling pressure on Thursday and for now, seems to have snapped a five-day winning streak to a three-week high, around the $24.35 region touched the previous day. The white metal extends intraday descent through the early European session and drops to a fresh daily low, around the $24.15 region in the last hour.</p>
<p>From a technical perspective, the extremely overbought Relative Strength Index (RSI) on hourly charts turns out to be a key factor that prompts some long-unwinding around the XAG/USD. That said, oscillators on the daily chart have just started gaining positive traction. Furthermore, the overnight breakout through the $23.75 confluence, comprising the 200-period Simple Moving Average (SMA) on the 4-hour <a href="https://www.fxstreet.com/rates-charts/chart">chart</a> and the 50% Fibonacci retracement level of the July-August downfall, favours bulls.</p>
<p>Hence, any subsequent slide below the $24.00 round-figure mark is more likely to attract fresh buyers near the aforementioned confluence breakpoint, now turned support. This should help limit the downside for the XAG/USD near the $23.40 region. This is closely followed by support near the $23.25 area, which if broken could drag the white metal back towards the $23.00 mark. A convincing break below the latter will negate the positive <a href="https://www.fxstreet.com/rates-charts/forecast">outlook</a> and shift the near-term bias in favour of bearish traders.</p>
<p>On the flip side, bulls might now wait for some follow-through buying beyond the overnight swing high, around the $24.35 area, before placing fresh bets. The XAG/USD might then aim to surpass the $24.55-$24.60 intermediate hurdle and climb further to the $25.00 psychological mark en route to the July monthly swing high, around the $25.25 zone. Some follow-through buying will mark a fresh breakout and pave the way for a further near-term appreciating move toward the $26.00 round figure.</p>
<h2>Silver 4-hour chart</h2>
<p><a href="https://editorial.fxstreet.com/miscelaneous/image-638284590443861375.png" target="_blank" rel="noopener"><img decoding="async" alt="fxsoriginal" src="https://editorial.fxstreet.com/miscelaneous/image-638284590443861375.png" style="width: 650px; height: 314px;" /></a></p>
<h3>Technical levels to watch</h3>
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<br /><a href="https://www.fxstreet.com/news/silver-price-analysis-xag-usd-corrects-from-three-week-top-holds-above-2400-mark-202308240731">Source link </a></p><p>The post <a href="https://forextraderhub.com/xag-usd-corrects-from-three-week-top-holds-above-24-00-mark.html">XAG/USD corrects from three-week top, holds above $24.00 mark</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>