Silver Price Analysis: XAG/USD bulls retain control near multi-month peak, above $25.00


  • Silver attracted dip-buying on Tuesday and recovered a major part of the overnight losses.
  • The set-up remains tilted in favour of bullish and supports prospects for additional gains.
  • Dips below the $25.00 mark could still be seen as a buying opportunity and remain limited.

Silver regained positive traction on Tuesday and reversed a major part of the overnight retracement slide from a more than a three-month peak. The white metal built on its steady intraday ascent and climbed to a fresh daily top, around the $25.25 region heading into the North American session.

Looking at the broader picture, the recent strong recovery from YTD lows, around the $21.40 region touched in September, has been along an upward sloping channel. This points to a well-established short-term bullish trend and supports prospects for an extension of the appreciating move.

Apart from this, last week's sustained breakout through 100-day SMA/38.2% Fibo. confluence barrier, the $24.50 supply zone adds credence to the positive outlook. Moreover, acceptance above the 50% Fibo. level, around the key $25.00 psychological mark reaffirms the constructive set-up for the XAG/USD.

With oscillators on the daily chart holding in the bullish territory and still far from being in the overbought zone, a subsequent move towards the $25.55-60 region, en-route the $26.00 mark, remains a distinct possibility. The latter coincides with the 61.8% Fibo. and should act as a strong barrier.

On the flip side, any meaningful corrective pullback might continue to attract some dip-buying near the $25.00 mark. This, in turn, should help limit the downside near the $24.50 resistance breakpoint. Failure to defend the mentioned support could drag the XAG/USD towards the $24.00 round-figure mark.

Silver daily chart

fxsoriginal

Technical levels to watch

XAG/USD

Overview
Today last price 25.24
Today Daily Change 0.14
Today Daily Change % 0.56
Today daily open 25.1
 
Trends
Daily SMA20 24.27
Daily SMA50 23.47
Daily SMA100 24.15
Daily SMA200 25.36
 
Levels
Previous Daily High 25.38
Previous Daily Low 24.91
Previous Weekly High 25.39
Previous Weekly Low 24.03
Previous Monthly High 24.83
Previous Monthly Low 22
Daily Fibonacci 38.2% 25.09
Daily Fibonacci 61.8% 25.2
Daily Pivot Point S1 24.88
Daily Pivot Point S2 24.66
Daily Pivot Point S3 24.41
Daily Pivot Point R1 25.35
Daily Pivot Point R2 25.6
Daily Pivot Point R3 25.82

 

 

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