Silver Price Analysis: XAG/USD surrenders intraday gains, still comfortable above $26.00 mark


  • Silver struggled to preserve its early modest gains to four-day tops.
  • Mixed technical indicators warrant some caution for bullish traders.

Silver edged higher through the first half of the trading action on Tuesday and shot to four-day tops, around the $26.35 region during the early European session. The momentum, however, lacked any follow-through and the commodity has now retreated to the lower end of its daily trading range.

The emergence of some dip-buying on Monday and the subsequent move up support prospects for additional gains. That said, bulls, so far, have struggled to find acceptance above the $26.30 strong resistance, which coincides with the 50% Fibonacci level of the $23.78-$28.75 move up.

Moreover, technical indicators on the daily chart are yet to confirm a bullish bias and warrants some caution before positioning for any further appreciating move. The technical set-up points to an extension of the recent range-bound price action ahead of Tuesday's release of the key US CPI report.

In the meantime, any subsequent move up is likely to confront some resistance near mid-$26.00s, which is followed by the $26.80 supply zone, also marking the 38.2% Fibo. level. A sustained strength beyond will negate any near-term negative bias and prompt some short-covering move.

The XAG/USD might then aim to surpass the $27.00 round-figure mark and accelerate the positive momentum further towards the 23.6% Fibo. level, around mid-$27.00s.

On the flip side, any downfall might continue to attract some buying near the $26.00-$25.90 region. The next relevant support is pegged near the $25.75-70 confluence region – comprising the very important 200-day SMA and the 61.8% Fibo. level – ahead of June swing lows, around mid-$25.00s.

Sustained weakness below will be seen as a fresh trigger for bearish traders and set the stage for an extension of last week's rejection slide from the vicinity of the 38.2% Fibo. level. The XAG/USD might then extend the downward trajectory further towards challenging the key $25.00 psychological mark.

Silver daily chart

fxsoriginal

Technical levels to watch

XAG/USD

Overview
Today last price 26.26
Today Daily Change 0.07
Today Daily Change % 0.27
Today daily open 26.19
 
Trends
Daily SMA20 26.17
Daily SMA50 27.05
Daily SMA100 26.46
Daily SMA200 25.82
 
Levels
Previous Daily High 26.28
Previous Daily Low 25.87
Previous Weekly High 26.78
Previous Weekly Low 25.76
Previous Monthly High 28.56
Previous Monthly Low 25.52
Daily Fibonacci 38.2% 26.13
Daily Fibonacci 61.8% 26.03
Daily Pivot Point S1 25.94
Daily Pivot Point S2 25.7
Daily Pivot Point S3 25.53
Daily Pivot Point R1 26.36
Daily Pivot Point R2 26.53
Daily Pivot Point R3 26.77

 

 

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