- Silver traded in a narrow trading band around the $23.00 signal on Tuesday.
- This situation favors bullish traders and supports prospects for further gains in the short term.
- A convincing break below the $22.00 signal is needed to negate the constructive outlook.
Silver is fighting for a firm intraday direction on Tuesday and trading tepid gains/small losses during the first half of the European session. The white metal is currently sitting around the $23.00 signal, almost unchanged on the day, and looks set to continue its recent bull run of the last three weeks or so.
The intraday decline finds some support near the 61.8% Fibonacci level of the recent pullback from a multi-month high. Furthermore, the oscillators on the daily chart remain comfortably in positive territory and are still far from the overbought zone. This, in turn, favors bullish traders and suggests that the path of least resistance for XAG/USD is to the upside.
That being said, it is still prudent to wait for follow-through buying beyond the overnight swing high near the $23.25 zone before positioning for further gains. In that case, XAG/USD could break above the $23.50 barrier (the multi-week high set last Friday) and accelerate the push towards the $24.00 signal en route to the multi-month high, around the area of ​​$24.65 touched in February.
On the other hand, weakness below the $22.80 zone is likely to find some support near the $22.50 zone. Some follow-on selling has the potential to drag XAG/USD towards the $22.20 area. Next, $22.00 and the support of $21.75-$21.70 (38.2% of the Fibonacci level). Failure to defend such support levels will negate the positive outlook and the short-term bias will shift in favor of bears.
silver daily chart
Key levels to watch
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
