Silver Price Analysis: XAG/USD sticks to gains near $24.60-65 area, bearish bias remains

Silver gained some positive traction on Tuesday and snapped a three-day losing streak.
The mixed technical setup warrants some caution before positioning for any further upside.
Sustained move beyond the $25.00 mark is needed to support any near-term positive bias.

Haresh Menghani FXStreet

Silver built on the overnight bounce from the $24.30-$24.25 region and gained some positive traction on Tuesday, snapping three successive days of the losing streak to a four-day low. The white metal held on to its modest gains through the first half of the European session and was last seen trading around the $24.65-$24.70 zone.

From a technical perspective, the XAG/USD again showed some resilience below the 50% Fibonacci retracement level of the $22.00-$26.95 move up. The subsequent move up supports prospects for additional intraday gains, though neutral technical indicators on the daily chart warrants caution for aggressive bullish traders.

Hence, any further positive move might continue to confront stiff resistance and remain capped near the 38.2% Fibo. level, around the $25.00 psychological mark. A convincing breakthrough of the said handle has the potential to lift the XAG/USD towards the $25.35-$25.40 intermediate hurdle, en-route the 23.6% Fibo., around the $25.75-$25.80 area.

On the flip side, weakness below the mid-$24.00 mark, or the 50% Fibo. level now seems to find some support near the overnight swing low, around the $24.30-$24.25 region. Some follow-through selling would make the XAG/USD vulnerable to accelerating the slide towards retesting sub-$24.00 levels, or the one-month low touched in March.

Silver daily chart

Technical levels to watch

XAG/USD

Overview
Today last price	24.64
Today Daily Change	0.11
Today Daily Change %	0.45
Today daily open	24.53

Trends
Daily SMA20	25.2
Daily SMA50	24.34
Daily SMA100	23.69
Daily SMA200	23.92

Levels
Previous Daily High	24.85
Previous Daily Low	24.28
Previous Weekly High	25.6
Previous Weekly Low	23.97
Previous Monthly High	26.95
Previous Monthly Low	23.97
Daily Fibonacci 38.2%	24.5
Daily Fibonacci 61.8%	24.63
Daily Pivot Point S1	24.26
Daily Pivot Point S2	23.99
Daily Pivot Point S3	23.7
Daily Pivot Point R1	24.83
Daily Pivot Point R2	25.12
Daily Pivot Point R3	25.39

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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