Silver Price Analysis: XAG/USD holds steady near $23.00, bulls retain control above 61.8% Fibo.

Silver is seen oscillating in a narrow trading band around the $23.00 mark on Tuesday.
The setup favours bullish traders and supports prospects for additional near-term gains.
A convincing break below the $22.00 mark is needed to negate the constructive outlook.

Haresh Menghani FXStreet

Silver struggles for a firm intraday direction on Tuesday and seesaws between tepid gains/minor losses through the first half of the European session. The white metal is currently placed around the $23.00 round-figure mark, nearly unchanged for the day, and seems poised to prolong its recent upward trajectory witnessed over the past three weeks or so.

The intraday downtick finds some support near the 61.8% Fibonacci retracement level of the recent pullback from a multi-month peak. Furthermore, oscillators on the daily chart are holding comfortably in the positive territory and are still far from being in the overbought zone. This, in turn, favours bullish traders and suggests that the path of least resistance for the XAG/USD is to the upside.

That said, it will still be prudent to wait for some follow-through buying beyond the overnight swing high, near the $23.25 area, before positioning for any further gains. The XAG/USD might then surpass the $23.50 hurdle (the multi-week top set last Friday) and accelerate the momentum towards the $24.00 mark en route to the multi-month peak, around the $24.65 region touched in February.

On the flip side, weakness below the $22.80 zone is likely to find some support near the $22.50 area. Some follow-through selling has the potential to drag the XAG/USD towards the $22.20 region. This is followed by the $22.00 mark and the $21.75-$21.70 support (38.2% Fibo. level). Failure to defend the said support levels will negate the positive outlook and shift the near-term bias in favour of bears.

Silver daily chart

Key levels to watch

XAG/USD

Overview
Today last price	23.05
Today Daily Change	-0.03
Today Daily Change %	-0.13
Today daily open	23.08

Trends
Daily SMA20	21.64
Daily SMA50	22.22
Daily SMA100	22.5
Daily SMA200	20.98

Levels
Previous Daily High	23.28
Previous Daily Low	22.85
Previous Weekly High	23.52
Previous Weekly Low	22.16
Previous Monthly High	24.64
Previous Monthly Low	20.42
Daily Fibonacci 38.2%	23.01
Daily Fibonacci 61.8%	23.12
Daily Pivot Point S1	22.86
Daily Pivot Point S2	22.64
Daily Pivot Point S3	22.43
Daily Pivot Point R1	23.29
Daily Pivot Point R2	23.5
Daily Pivot Point R3	23.72

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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