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Silver Price Analysis: XAG/USD on the back foot above $24.00, upside potential intact

  • The price of silver moves lower on Tuesday, although there is no follow-up selling at the moment.
  • The setup continues to favor the bulls and supports further earnings prospects.
  • A break below the $23.40-35 confluence could undo the uptrend.

The silver price (XAG/USD) is moving lower during the European session on Tuesday, although it has had no continuation and remains within the wider operating range of the previous day. The white metal manages to hold above the $24.00 level, and looks set to continue to rally.

The recent price movement in the last month constitutes the formation of an ascending channel. The lower end of that trend channel, currently around the $23.40-$23.35 zone, coincides with the 200 SMA on the 4-hour chart and should act as a pivotal point for XAG/USD.

The oscillators on the 4 hour/daily chart, although they have been losing traction, remain in positive territory and favor the bulls. That being said, it will be prudent to wait for some continuation buying above the multi-month high around the $24.50 area before positioning for further gains.

The subsequent move higher could send XAG/USD towards the psychological level of $25.00 for the first time since April 2022. Some continuation buying should pave the way for an extension of the move higher towards the next relevant hurdle near the zone of resistance at $25.35-$25.40.

On the other hand, any significant drop below the $24.00 level is likely to attract new buyers and remain capped near the aforementioned confluence support around the $23.40-$23.35 area. A convincing break below this region will nullify the positive outlook and shift the bias in favor of the bears.

XAG/USD could weaken below the $23.00 level and accelerate the decline towards the $22.60-$22.55 zone. The bearish trajectory could extend further towards the next relevant support near the $22.10-$22.00 zone.

Silver 4 hour chart


Silver additional technical levels


Last price today 24.19
daily change today -0.07
today’s daily variation -0.29
today’s daily opening 24.26
daily SMA20 23.82
daily SMA50 22.79
daily SMA100 twenty-one
daily SMA200 21.08
previous daily high 24.51
previous daily low 23.94
Previous Weekly High 24.3
previous weekly low 23.22
Previous Monthly High 24.3
Previous monthly minimum 22.03
Fibonacci daily 38.2 24.16
Fibonacci 61.8% daily 24.29
Daily Pivot Point S1 23.96
Daily Pivot Point S2 23.66
Daily Pivot Point S3 23.38
Daily Pivot Point R1 24.53
Daily Pivot Point R2 24.81
Daily Pivot Point R3 25.11

Source: Fx Street

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