- 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
Technical levels to watch
|Today last price||24.36|
|Today Daily Change||-0.11|
|Today Daily Change %||-0.45|
|Today daily open||24.47|
|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|
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.