- 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
Technical levels to watch
|Today last price||26.26|
|Today Daily Change||0.07|
|Today Daily Change %||0.27|
|Today daily open||26.19|
|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|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.