Silver Price Analysis: XAG/USD remains depressed below 38.2% Fibo./100-period SMA confluence

Silver witnessed some selling on Tuesday and dropped to an intraday low level of $22.40 during the first part of the trading action, albeit managed to recover a bit thereafter. The commodity was last seen hovering around the $22.55 area, still down over 0.50% for the day.

From a technical perspective, the recent positive move witnessed over the past three trading sessions stalled near a resistance marked by the 38.2% Fibonacci level of the $24.87-$21.42 downfall. The mentioned barrier coincides with 100-period SMA on the 4-hour chart and should now act as a key pivotal point for short-term traders.

Meanwhile, technical indicators on hourly charts have again started moving into the positive territory but are yet to gain any meaningful traction on the daily chart. Hence, any subsequent move beyond the mentioned confluence hurdle might still struggle to find acceptance above the $23.00 mark and falter near the 50% Fibo. level resistance.

That said, some follow-through buying beyond the $23.10-15 region will be seen as a fresh trigger for bullish traders and set the stage for additional gains. The XAG/USD might then accelerate the momentum towards the 61.8% Fibo. level, around the $23.55-60 region, before eventually aiming to reclaim the $24.00 round-figure mark.

On the flip side, immediate support is pegged near the 23.6% Fibo. level, around the $22.25 area. A convincing break below might turn the XAG/USD vulnerable to break below the $22.00 mark and drop back towards challenging last week's swing lows, around the $21.45-40 region.

Silver 4-hour chart

Technical levels to watch