Silver Price Analysis: XAG/USD moves away from its yearly high and falls below $25.00

• The price of Silver extends its recent decline from the yearly high, although the decline appears limited.
• The setup favors buying prospects at lower levels, near $24.00.
• Weakness below this latter level could spark fresh selling and pave the way for additional losses.

The price of Silver (XAG/USD) remains under selling pressure for the second day in a row on Tuesday and retreats further from the yearly high, around the $25.45 area touched last week. The white metal continues to lose ground during the first half of the European session and falls to a new daily low, around the $24.85-$24.80 area in the last hour.

From a technical standpoint, the recent break through the all-important 200-day SMA and subsequent strength above the $24.50-$24.60 horizontal barrier favor the bulls. Furthermore, the daily chart oscillators, although they have pulled back from higher levels, continue to remain comfortably in positive territory. This, in turn, supports prospects for some buying at lower levels and warrants some caution before positioning for any further depreciation moves.

Meanwhile, the resistance breakout point at $24.60 to $24.50 appears to protect the immediate decline. Any further decline could be seen as a buying opportunity and is more likely to remain capped near the $24.15-$24.10 region. Next is the $24.00 level, which if broken decisively could change the bias in favor of the bears. In that case,

On the other hand, the momentum back above the psychological level of $25.00 could face some resistance near the $25.20 region ahead of the yearly high, around the $25.45 area. Some follow-through buying will reaffirm the positive near-term outlook and allow XAG/USD to re-challenge the December 2023 high, levels just ahead of the $26.00 round level. This last level should act as a pivotal point, which if decisively surpassed will pave the way for an extension of the uptrend of more than two weeks.

Daily Silver Price Chart