• Silver regains some traction and stalls the overnight pullback from a multi-month high.
  • The emergence of fresh buying near the very important 200 DMA favours bullish traders.
  • The lack of follow-through buying warrants caution before positioning for further gains.

Silver attracts some buying near the $21.40 region on Wednesday and for now, seems to have stalled the previous day's sharp retracement slide from over a five-month high. The white metal climbs back above the mid-$21.00s during the early European session, though lacks follow-through.

From a technical perspective, the emergence of dip-buying near the very important 200-day SMA favours bullish traders. The positive outlook is reinforced by the fact that oscillators on the daily chart are holding comfortably in bullish territory. That said, the metal's inability to capitalize on the modest intraday uptick warrants some caution before positioning for any further appreciating move.

In the meantime, any subsequent move up beyond the $21.70 horizontal barrier could face resistance near the $22.00 round-figure mark. This is closely followed by the multi-month peak, around the $22.25 region, which if cleared will set the stage for additional gains. The XAGUSD might then accelerate the momentum towards the $22.50-$22.60 supply zone and eventually aim to reclaim the $23.00 mark.

On the flip side, the $21.40-$21.30 area might continue to protect the immediate downside ahead of a strong horizontal resistance breakpoint now turned support near the $21.00 mark. A convincing break below will make the XAGUSD vulnerable to test the next relevant support near the $20.40-$20.35 region. The corrective slide could get extended and drag spot prices towards the $20.00 psychological mark.

Silver daily chart

fxsoriginal

Key levels to watch

XAG/USD

Overview
Today last price 21.58
Today Daily Change 0.00
Today Daily Change % 0.00
Today daily open 21.58
 
Trends
Daily SMA20 20.1
Daily SMA50 19.63
Daily SMA100 19.48
Daily SMA200 21.46
 
Levels
Previous Daily High 22.25
Previous Daily Low 21.39
Previous Weekly High 22.06
Previous Weekly Low 20.39
Previous Monthly High 21.24
Previous Monthly Low 18.09
Daily Fibonacci 38.2% 21.72
Daily Fibonacci 61.8% 21.92
Daily Pivot Point S1 21.23
Daily Pivot Point S2 20.88
Daily Pivot Point S3 20.36
Daily Pivot Point R1 22.09
Daily Pivot Point R2 22.6
Daily Pivot Point R3 22.96

 

 

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