Silver Price Analysis: XAG/USD sticks to gains near $24.60-65 area, bearish bias remains
- Silver gained some positive traction on Tuesday and snapped a three-day losing streak.
- The mixed technical setup warrants some caution before positioning for any further upside.
- Sustained move beyond the $25.00 mark is needed to support any near-term positive bias.
Silver built on the overnight bounce from the $24.30-$24.25 region and gained some positive traction on Tuesday, snapping three successive days of the losing streak to a four-day low. The white metal held on to its modest gains through the first half of the European session and was last seen trading around the $24.65-$24.70 zone.
From a technical perspective, the XAG/USD again showed some resilience below the 50% Fibonacci retracement level of the $22.00-$26.95 move up. The subsequent move up supports prospects for additional intraday gains, though neutral technical indicators on the daily chart warrants caution for aggressive bullish traders.
Hence, any further positive move might continue to confront stiff resistance and remain capped near the 38.2% Fibo. level, around the $25.00 psychological mark. A convincing breakthrough of the said handle has the potential to lift the XAG/USD towards the $25.35-$25.40 intermediate hurdle, en-route the 23.6% Fibo., around the $25.75-$25.80 area.
On the flip side, weakness below the mid-$24.00 mark, or the 50% Fibo. level now seems to find some support near the overnight swing low, around the $24.30-$24.25 region. Some follow-through selling would make the XAG/USD vulnerable to accelerating the slide towards retesting sub-$24.00 levels, or the one-month low touched in March.
Silver daily chart
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Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
