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

fxsoriginal

Technical levels to watch

XAG/USD

Overview
Today last price 26.91
Today Daily Change 0.03
Today Daily Change % 0.11
Today daily open 26.88
 
Trends
Daily SMA20 25.82
Daily SMA50 25.86
Daily SMA100 26.04
Daily SMA200 25.57
 
Levels
Previous Daily High 27
Previous Daily Low 25.81
Previous Weekly High 26.48
Previous Weekly Low 25.71
Previous Monthly High 26.64
Previous Monthly Low 24.25
Daily Fibonacci 38.2% 26.54
Daily Fibonacci 61.8% 26.26
Daily Pivot Point S1 26.13
Daily Pivot Point S2 25.37
Daily Pivot Point S3 24.94
Daily Pivot Point R1 27.32
Daily Pivot Point R2 27.75
Daily Pivot Point R3 28.51

 

 

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