Silver Price Analysis: XAG/USD remains below multi-month-old descending trend-line resistance


  • XAG/USD attracts fresh buying on Tuesday and reverses the previous day’s slide.
  • The technical setup favours bullish traders and supports prospects for further gains.
  • A move beyond a descending trend-line is needed to reaffirm the positive outlook.

Silver (XAG/USD) regains positive traction on Tuesday to reverse the previous day's losses and maintains its bid tone through the first half of the European session. The white metal currently trades around the $23.65-$23.70 region, up 1.0% for the day, and seems poised to appreciate further.

From a technical perspective, the recent pullback from the $24.15 region, or the highest level since September 4, stalled near the very important 200-day Simple Moving Average (SMA) resistance breakpoint, now turned support. The subsequent move up favours bullish traders and supports prospects for a further appreciating move. Moreover, oscillators on the daily chart are holding in the positive territory and are still far from being in the overbought zone, validating the positive outlook for the XAG/USD.

Bulls, however, might wait for a sustained breakout through a downward-sloping trend line extending from the May swing high, currently pegged near the $24.00 mark, before placing fresh bets. The XAG/USD might then aim to surpass the $24.20-$24.25 intermediate resistance and make a fresh attempt towards conquering the $25.00 psychological mark. Some follow-through buying beyond the $25.15-$25.20 region should set the stage for a move towards reclaiming the $26.00 round figure for the first time since May.

On the flip side, the 200-day SMA, currently pegged near the $23.30 region, might continue to protect the immediate downside. Any further decline might still be seen as a buying opportunity and remain limited near the $23.00 mark. That said, a convincing break below the latter might prompt aggressive technical selling and drag the XAG/USD further towards the $22.35-$22.30 zone en route to the $22.00 mark.

Silver daily chart

fxsoriginal

Technical levels to watch

XAG/USD

Overview
Today last price 23.67
Today Daily Change 0.23
Today Daily Change % 0.98
Today daily open 23.44
 
Trends
Daily SMA20 22.98
Daily SMA50 22.7
Daily SMA100 23.22
Daily SMA200 23.29
 
Levels
Previous Daily High 23.81
Previous Daily Low 23.25
Previous Weekly High 24.15
Previous Weekly Low 21.88
Previous Monthly High 23.7
Previous Monthly Low 20.68
Daily Fibonacci 38.2% 23.46
Daily Fibonacci 61.8% 23.6
Daily Pivot Point S1 23.19
Daily Pivot Point S2 22.93
Daily Pivot Point S3 22.62
Daily Pivot Point R1 23.76
Daily Pivot Point R2 24.07
Daily Pivot Point R3 24.32

 

 

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