• Silver extended the overnight pullback from the $22.50 supply zone and edged lower on Tuesday.
  • The 23.6% Fibo helped limit the downside, with bulls showing resilience below the $22.00 mark.
  • Sustained strength beyond the 38.2% Fibo. is needed to support prospects for any further upside.

Silver extended the previous day's retracement slide from a one-month high, around the $22.45-$22.50 supply zone and witnessed some follow-through selling on Tuesday. The white metal remained depressed through the early European session and was last seen flirting with the daily low, around the $22.00 round-figure mark.

Looking at the broader picture, the XAG/USD, so far, has been struggling to make it through the 200-period SMA resistance on the 4-hour chart. The mentioned barrier, currently around the $22.30 area, should act as a pivotal point, which if cleared might be seen as a trigger for bulls and pave the way for further gains.

The XAG/USD could then surpass the $22.50 resistance zone, which coincides with the 38.2% Fibonacci retracement level of the $26.22-$20.46 downfall. The momentum could then allow bulls to reclaim the $23.00 mark and lift spot prices further to the next relevant hurdle near the $23.30 region, or the 50% Fibo. level.

On the flip side, any subsequent fall is likely to find some support near the 23.6% Fibo. level, around the $21.80-$21.75 region. Some follow-through selling, leading to a convincing break below the $21.50 area, would make the XAG/USD vulnerable to testing the $21.00 mark with some intermediate support near the $21.30 zone. The downward trajectory could further get extended and expose the YTD low, around the $20.45 region touched on May 13.

Silver 4-hour chart

fxsoriginal

Key levels to watch

XAG/USD

Overview
Today last price 22.01
Today Daily Change -0.07
Today Daily Change % -0.32
Today daily open 22.08
 
Trends
Daily SMA20 21.74
Daily SMA50 23.19
Daily SMA100 23.71
Daily SMA200 23.5
 
Levels
Previous Daily High 22.52
Previous Daily Low 21.9
Previous Weekly High 22.48
Previous Weekly Low 21.44
Previous Monthly High 23.28
Previous Monthly Low 20.46
Daily Fibonacci 38.2% 22.28
Daily Fibonacci 61.8% 22.13
Daily Pivot Point S1 21.81
Daily Pivot Point S2 21.55
Daily Pivot Point S3 21.2
Daily Pivot Point R1 22.43
Daily Pivot Point R2 22.78
Daily Pivot Point R3 23.05

 

 

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