Silver is on track for a daily upside extension
|- Silver is at a critical juncture and could be on the verge of a significant bullish impulse.
- XAG/USD bulls looking for a sign on the lower time frames.
The price of silver is lower in Asia by 0.33% at the time of writing with the price dropping to a low of $27.63 from a high of $27.79.
The move, however, could be offering the bulls a discount with prospects of a daily continuation to the upside unfolding from a technical perspective, (more on that below).
Meanwhile, investors shrugged off concerns about higher inflation, with a weaker greenback boosting appetite in risky asset classes.
Overnight, XAG/USD was up some 0.8% by the close of play on Wall Street having travelled from a low of $27.46 to a high of $27.90 as per XAG/USD.
The bulls took advantage of a soft greenback that was bobbing along the bottom of the daily bearish trend on Monday.
Weakness in cryptocurrencies has also seen investor switch back into both silver and gold.
The gold to silver ratio was also down favouring the white metal, falling from a high of 68.3910 to a low of 67.5970, lower by 0.76%.
As a whole, the commodity complex is in better stead.
The CRB index was higher by just over 1% in the wake of renewed dollar weakness and stronger equities despite the holidays.
Silver technical analysis
As per prior analysis, ''...there is a compelling argument from a daily perspective as follows:
Should the price hold the current daily support, then an upwards continuation will be on the cards in line with the broader trend.''
Additional prior analysis
''... On the upside, bulls will seek to replenish the weekly $28.75 highs in what will be a fresh daily impulse to the upside from a 61.8% Fibonacci retracement of the prior daily bullish impulse.''
Live market analysis
The price action in this current area can be monitored from a vantage point on the lower time frames for bullish structure and bullish technical conditions.
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