Silver Price Analysis: XAG/USD bulls take a breather near 50-day SMA hurdle near mid-$20.00s

Silver struggles to capitalize on last week's strong move up and seesaws between tepid gains/minor losses on the first day of a new week, still confined in a range below mid-$20.00s, or a one-month high set earlier this Monday.

From a technical perspective, the XAG/USD, so far, has struggled to find acceptance above the 50% Fibonacci retracement level of the $22.52-$18.15 slide. Furthermore, the strong positive momentum stalls near the 50-day SMA. The latter should now act as a key pivotal point and help traders determine the next leg of a directional move.

Oscillators on the daily chart, meanwhile, have just started gaining positive traction and support prospects for a further near-term appreciating move. That said, RSI (14) on the daily chart is already flashing overbought conditions. This makes it prudent to wait before the next leg up for the XAG/USD.

Spot prices might then aim to surpass the 61.8% Fibo. level, around the $20.85 region, and reclaim the $21.00 round figure. The momentum could further get extended and lift the XAG/USD towards the next relevant hurdle near the $21.40-$21.50 area en-route the $22.00 mark and the 100-day SMA, currently around the $22.15 zone.

On the flip side, any meaningful slide now seems to find decent support near the $20.00 psychological mark. This is followed by the 38.2% Fibo. level, around the $19.80 region. A convincing break below the latter would suggest that the recovery from the YTD low has run out of steam and shift the bias in favour of bearish traders.

Silver daily chart

Key levels to watch