Silver Price Analysis: XAG/USD recovers early lost ground, flat-lined around $23.70-75
|- Silver attracted some dip-buying near 100-hour SMA on Monday.
- The intraday technical setup supports prospects for further gains.
- Bearish oscillators on the daily chart warrant some caution for bulls.
Silver found a decent support near 100-hour SMA support and managed to reverse an intraday slide to the $23.45-40 region. The commodity was last seen trading near the top end of its daily trading range, around the $23.70-75 area.
The emergence of some dip-buying comes on the back of Friday's move beyond the 23.6% Fibonacci level of the $25.92-$22.17 sharp fall. This, in turn, favours bullish traders and supports prospects for additional intraday gains. The positive outlook is reinforced by the fact that technical indicators on the hourly charts chart have been gaining positive traction. That said, oscillators on the daily chart are still holding deep in the bearish territory.
Hence, any subsequent move up is more likely to confront stiff resistance near the 38.2% Fibo. level, around the $24.00 mark. A move beyond will be seen as a fresh trigger for bulls and pave the way for a further appreciating move. The XAG/USD might then surpass an intermediate resistance near the $24.35-40 horizontal zone and test the next relevant hurdle marked by the 61.8% Fibo. level, around the $24.55-60 region.
On the flip side, the $23.45-40 area might continue to protect the immediate downside. A convincing break below might prompt some technical selling and turn the XAG/USD vulnerable to challenge YTD lows, around the 22.20 region.
Silver 1-hour chart
Technical levels to watch
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