Silver Price Analysis: XAG/USD jumps to near three-week high, around $22.65-70 region

Silver regained positive traction on Tuesday and snapped two successive days of the losing streak. The momentum pushed spot prices to a nearly three-week high, around the $22.65-70 region during the first half of the European session.

Bulls are now be looking to build on the momentum beyond the 100-period EMA on the 4-hour chart and extend the recent bounce from the YTD low, around the $21.40 area touched last week. That said, mixed technical indicators on hourly/daily charts warrant some caution.

Oscillators on the daily chart – though have been recovering from lower levels – are still holding in the bearish territory, while RSI on the 1-hour chart is already flashing overbought conditions. Nevertheless, the intraday set-up supports prospects for further gains.

From current levels, any subsequent move up is likely to confront stiff resistance near the $22.80-85 area. Some follow-through buying, leading to a move beyond the $23.00 mark could push the XAG/USD towards the next relevant hurdle near the $23.30-35 region.

On the flip side, the $22.20-15 area now seems to protect the immediate downside ahead of the $22.00 round-figure mark. A further decline would negate the positive bias and turn the XAG/USD vulnerable to slide back to restest YTD lows support, around the $21.40 region.

Silver 4-hour chart

Technical levels to watch