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Silver Price Analysis: XAG/USD Clings to Gains Near $22.50, Not Out of the Woods Yet

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  • Silver attracts some buying on Tuesday and remains above the 38.2% Fibonacci support.
  • The situation favors the bears and supports the prospects of a possible break down.
  • Sustained strength above the 50-day SMA is needed to negate the bearish outlook.

Silver (XAG/USD) regains some positive traction on Tuesday and holds on to its modest intraday gains, just below $22.50 at the start of the European session. The white metal, however, lacks bullish conviction and remains very close to the nearly two-month low hit on Monday.

On a bigger picture, XAG/USD last week confirmed a bearish break through support at the low of a multi-week trading range near the $23.00-$22.90 zone. On the other hand, bearish technical indicators on the daily chart support the prospects of an extension of the recent sharp pullback from the highest since April 2022 hit last Thursday.

XAG/USD, however, manages to hold above the $22.15 support zone, or the 23.6% Fibonacci retracement of the recent rally from October 2022, which should act as a support point. Selling below the $22.00 level will reaffirm the downtrend and drag the white metal to the next relevant support near the 100-day SMA, around the $21.60-$21.55 area.

On the flip side, any meaningful recovery is likely to be hit by a hurdle near the aforementioned support breakout point, around the $23.00-$22.90 region. It is closely followed by the 50-day SMA, currently hovering around the $23.30-$23.35 zone. Sustained strength above this region will negate the short-term bearish outlook for XAG/USD.

The momentum could then allow the bulls to recapture the round $24.00 level. XAG/USD could rally back to the $24.55-$24.60 resistance zone on its way to the psychological $25.00 level for the first time since April 2022 and the next relevant hurdle near the $25.35 region.

silver daily chart

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Silver additional technical levels

XAG/USD

Overview
Last price today 22.43
daily change today 0.17
today’s daily variation 0.76
today’s daily opening 22.26
Trends
daily SMA20 23.62
daily SMA50 23.45
daily SMA100 21.72
daily SMA200 21.01
levels
previous daily high 22.62
previous daily low 22.15
Previous Weekly High 24.64
previous weekly low 22.29
Previous Monthly High 24.55
Previous monthly minimum 22.76
Fibonacci daily 38.2 22.33
Fibonacci 61.8% daily 22.44
Daily Pivot Point S1 22.06
Daily Pivot Point S2 21.87
Daily Pivot Point S3 21.59
Daily Pivot Point R1 22.53
Daily Pivot Point R2 22.81
Daily Pivot Point R3 23
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Source: Fx Street

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