• Silver ticks down on Tuesday, though lacks any follow-through selling.
  • The setup still favours bulls and supports prospects for additional gains.
  • A break below the $23.40-35 confluence might negate the positive bias.

Silver edges lower during the first half of trading on Tuesday, though lacks follow-through and remains well within the previous day's broader trading range. The white metal manages to hold its neck above the $24.00 mark and seems poised to appreciate further.

The recent price action witnessed over the past month or so constitutes the formation of an ascending channel. The lower end of the said trend channel, currently around the $23.40-$23.35 area, coincides with the 200-period SMA on the 4-hour chart and should act as a pivotal point for the XAG/USD.

Oscillators on 4-hour/daily charts - though have been losing traction - are holding in the positive territory and favour bullish traders. That said, it will be prudent to wait for some follow-through buying beyond the multi-month peak, around the $24.50 area, before positioning for further gains.

The subsequent move up has the potential to lift the XAG/USD towards the $25.00 psychological mark for the first time since April 2022. Some follow-through buying should pave the way for an extension of the appreciating move towards the next relevant hurdle near the $25.35-$25.40 resistance zone.

On the flip side, any meaningful slide below the $24.00 mark is more likely to attract fresh buyers and remain limited near the aforementioned confluence support, around the $23.40-$23.35 area. A convincing break below will negate the positive outlook and shift the bias in favour of bearish traders.

The XAG/USD might then turn vulnerable to weaken below the $23.00 round-figure mark and accelerate the fall towards the $22.60-$22.55 region. The downward trajectory could get extended further towards the next relevant support near the $22.10-$22.00 zone.

Silver 4-hour chart

fxsoriginal

Key levels to watch

XAG/USD

Overview
Today last price 24.19
Today Daily Change -0.07
Today Daily Change % -0.29
Today daily open 24.26
 
Trends
Daily SMA20 23.82
Daily SMA50 22.79
Daily SMA100 21
Daily SMA200 21.08
 
Levels
Previous Daily High 24.51
Previous Daily Low 23.94
Previous Weekly High 24.3
Previous Weekly Low 23.22
Previous Monthly High 24.3
Previous Monthly Low 22.03
Daily Fibonacci 38.2% 24.16
Daily Fibonacci 61.8% 24.29
Daily Pivot Point S1 23.96
Daily Pivot Point S2 23.66
Daily Pivot Point S3 23.38
Daily Pivot Point R1 24.53
Daily Pivot Point R2 24.81
Daily Pivot Point R3 25.11

 

 

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