Silver Price Analysis: XAG/USD holds steady above $25.00 mark, bullish potential intact


  • Silver edges higher on Tuesday and stalls a two-day corrective decline from a one-year top.
  • The technical setup still supports prospects for the resumption of a one-month-old uptrend.
  • A convincing break below the $24.00 mark is needed to negate the near-term positive bias.

Silver edges higher during the early European session on Tuesday and looks to build on the overnight modest bounce from the $24.80 area, or a one-week low. The white metal is currently placed just above the $25.00 psychological mark and for now, seems to have stalled its retracement slide from a one-year high, around the $26.10 region touched last Friday.

From a technical perspective, the recent breakout through the $24.30-$24.40 strong horizontal barrier was seen as a fresh trigger for bullish traders and supports prospects for additional gains. Moreover, the Relative Strength Index (RSI) on the daily chart has also eased from the overbought territory and adds credence to the near-term positive outlook for the XAG/USD.

Bulls, however, might wait for some follow-through buying beyond the $25.50 horizontal resistance before placing fresh bets. The XAG/USD might then take aim to conquer the $26.00 mark. The momentum could get extended further towards the next relevant hurdle near the $26.40-$26.50 region en route to the 2022 peak, just ahead of the $27.00 round-figure mark.

On the flip side, weakness below the overnight swing low, around the $24.80 area, is likely to find decent support and attract fresh buyers near the $24.40-$24.30 horizontal resistance breakpoint. This is followed by support near the $24.00 round-figure mark, which if broken decisively will negate the positive outlook and shift the near-term bias in favour of bearish traders.

The corrective decline could then drag the XAG/USD towards the $23.40-$23.35 static support en route to the $23.00 round-figure mark.

Silver daily chart

fxsoriginal

Key levels to watch

XAG/USD

Overview
Today last price 25.09
Today Daily Change 0.04
Today Daily Change % 0.16
Today daily open 25.05
 
Trends
Daily SMA20 24.13
Daily SMA50 22.51
Daily SMA100 22.97
Daily SMA200 21.28
 
Levels
Previous Daily High 25.6
Previous Daily Low 24.81
Previous Weekly High 26.09
Previous Weekly Low 24.72
Previous Monthly High 24.16
Previous Monthly Low 19.9
Daily Fibonacci 38.2% 25.12
Daily Fibonacci 61.8% 25.3
Daily Pivot Point S1 24.71
Daily Pivot Point S2 24.36
Daily Pivot Point S3 23.92
Daily Pivot Point R1 25.5
Daily Pivot Point R2 25.95
Daily Pivot Point R3 26.29

 

 

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