Silver Price Analysis: XAG/USD consolidates around $25.00 mark, bullish potential intact

Silver remains confined in a narrow trading band for the fourth straight day on Tuesday.
The technical setup favours bullish traders and supports prospects for additional gains.
Any meaningful slide is likely to find decent support near the $24.40-30 horizontal zone.

Haresh Menghani FXStreet

Silver extends its sideways consolidative price move for the fourth straight day on Tuesday and holds steady around the $25.00 psychological mark through the early European session.

The Relative Strength Index (RIS) on the daily chart is still flashing overbought conditions and holding back bullish traders from placing fresh bets around the XAG/USD. That said, last week's sustained breakout through the $24.30-$24.40 strong horizontal barrier supports prospects for an extension of the upward trajectory witnessed over the past month or so.

Hence, the range-bound price action might still be categorized as a bullish consolidation phase in the wake of the recent rally to a nearly one-year high touched last week. The constructive near-term technical setup suggests that the path of least resistance for the XAG/USD is to the upside and any meaningful corrective pullback is more likely to attract fresh buyers at lower levels.

Some follow-through buying beyond the YTD peak, around the $25.10-$25.15 area, will reaffirm the positive outlook and lift the XAG/USD further towards the $25.35-$25.40 region. The momentum could get extended towards the $26.00 mark en route to the next relevant hurdle near the $26.20 area, the $26.40-$26.50 zone and the 2022 high, just ahead of the $27.00 mark.

On the flip side, any corrective slide is likely to remain limited near the $24.40-$24.30 resistance-turned-support, which should now act as a pivotal point. A convincing break below could make the XAG/USD vulnerable to weaken below the $24.00 mark and test the $23.60-$23.55 support area before eventually dropping to the $23.15 zone en route to the $23.00 round figure.

Silver 4-hour chart

Key levels to watch

XAG/USD

Overview
Today last price	24.95
Today Daily Change	0.09
Today Daily Change %	0.36
Today daily open	24.86

Trends
Daily SMA20	23.27
Daily SMA50	22.31
Daily SMA100	22.76
Daily SMA200	21.14

Levels
Previous Daily High	25.08
Previous Daily Low	24.72
Previous Weekly High	25.14
Previous Weekly Low	23.57
Previous Monthly High	24.16
Previous Monthly Low	19.9
Daily Fibonacci 38.2%	24.86
Daily Fibonacci 61.8%	24.94
Daily Pivot Point S1	24.7
Daily Pivot Point S2	24.53
Daily Pivot Point S3	24.34
Daily Pivot Point R1	25.05
Daily Pivot Point R2	25.24
Daily Pivot Point R3	25.41

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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