Silver Price Analysis: XAG/USD bulls await a sustained move beyond $27.00 mark
|- Silver attracted some dip-buying on Tuesday and held steady near two-month tops.
- The technical set-up favours bullish traders and support prospects for additional gains.
- Only a sustained break below the $26.00 mark will negate the constructive outlook.
Silver reversed an intraday dip to the $26.70 region and refreshed daily tops during the early North American session. The white metal was last seen hovering near two-month tops, with bulls awaiting a sustained move beyond the $27.00 mark.
From a technical perspective, the overnight sustained move beyond the $26.50-60 supply zone confirmed a near-term bullish breakout. This, along with the emergence of some dip-buying on Tuesday, supports prospects for additional near-term gains.
Meanwhile, technical indicators on the daily chart maintained their bullish bias and are still far from being in the overbought territory. This further validates the constructive set-up and a possible move towards the next hurdle near mid-$27.00s.
Some follow-through buying should pave the way for an extension of the recent bounce from YTD lows and assist the XAG/USD bulls to aim back to reclaim the $28.00 round-figure mark. This is followed by resistance near the $28.30-35 region.
On the flip side, the $26.60-50 resistance breakpoint now seems to protect the immediate downside. Any further pullback might now be seen as a buying opportunity near the $26.30-25 region. This, in turn, should help limit the downside near the $26.00 mark.
A convincing breakt hrough the mentioned support levels will negate the positive outlook and prompt some aggressive technical selling. The XAG/USD might then turn vulnerable to accelerate the fall towards challenging the key $25.00 psychological mark.
XAG/USD daily chart
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.