Silver Price Analysis: XAG/USD jumps to near three-week high, around $22.65-70 region
- Silver gained some positive traction and shot to a near three-week high on Tuesday.
- Strength beyond 100-period EMA on H4 supports prospects for additional gains.
- Bearish oscillators on the daily chart warrant some caution for aggressive traders.
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
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
