Silver Price Analysis: XAG/USD bulls have the upper hand above $24.20-15 confluence


  • Silver attracted some dip-buying on Tuesday, though remained below two-week tops.
  • The bias favours bulls and supports prospects for a move towards the $24.80-85 area.

Silver reversed modest intraday losses and was last seen hovering near daily tops, just below mid-$24.00s, or two-week tops touched in the previous day.

Given the overnight sustained move beyond the $24.20-15 confluence barrier, the emergence of some dip-buying on Tuesday favours bullish traders. The outlook is reinforced by the fact that technical indicators on the hourly/daily charts are holding comfortably in the bullish territory and are still far from being in the overbought zone.

Hence, a subsequent move towards testing October monthly swing highs, around the $24.80-85 region, remains a distinct possibility. This is followed by the key $25.00 psychological mark. The latter coincides with the 50% Fibonacci level of the $28.75-$21.42 downfall, which if cleared decisively will set the stage for additional near-term gains.

The XAG/USD might then accelerate the momentum towards the next relevant hurdle near the $25.55-60 region before eventually aiming to test the 61.8% Fibo. level, around the $26.00 round-figure mark.

On the flip side, the $24.20-15 resistance breakpoint – comprising 100-day SMA and the 38.2% Fibo. levels – now seem to protect the immediate downside ahead of the $24.00 mark. Any subsequent fall might still be seen as a buying opportunity near the $23.70 area, which should help limit the downside near the $23.50 support zone.

Failure to defend the mentioned support levels would turn the XAG/USD vulnerable to retest strong support around the $23.00 mark. Some follow-through selling could shift the bias in favour of bearish traders and expose the next relevant support near mid-$22.00s. The downward trajectory could get extended towards YTD lows, around the $21.40 area touched in September.

Silver daily chart

fxsoriginal

Technical levels to watch

XAG/USD

Overview
Today last price 24.36
Today Daily Change -0.11
Today Daily Change % -0.45
Today daily open 24.47
 
Trends
Daily SMA20 23.82
Daily SMA50 23.4
Daily SMA100 24.21
Daily SMA200 25.41
 
Levels
Previous Daily High 24.51
Previous Daily Low 24.06
Previous Weekly High 24.17
Previous Weekly Low 23.02
Previous Monthly High 24.83
Previous Monthly Low 22
Daily Fibonacci 38.2% 24.34
Daily Fibonacci 61.8% 24.23
Daily Pivot Point S1 24.18
Daily Pivot Point S2 23.89
Daily Pivot Point S3 23.72
Daily Pivot Point R1 24.63
Daily Pivot Point R2 24.8
Daily Pivot Point R3 25.09

 

 

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