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.

Haresh Menghani FXStreet

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

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

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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