- Silver posted a modest bounce on Tuesday from the 200 hourly SMA support.
- Going beyond a descending channel should pave the way for more profit.
- Any subsequent positive move could still be seen as a selling opportunity.
At payment it attracted some buying on dips near the 200 hourly simple moving average and maintained its offered tone for the middle of the European session. The commodity was last seen trading near daily highs, around the $ 25.45-50 zone, an increase of more than 0.10% on the day. The aforementioned area marks the upper bound of a three-day-old downtrend channel, which if decisively cleared could pave the way for additional intraday gains. The XAG / USD it could accelerate the positive move back towards the $ 25.75-80 supply zone.
The latter coincides with the very important 200-day SMA. which should act as a key point for short-term traders. A sustained move further will set the stage for an extension of the recent bounce from $ 24.50, or close to the four-month lows touched in July. A few subsequent purchases beyond the $ 26.00 round number will reaffirm the positive outlook. XAG / USD could accelerate momentum and rise to test the next relevant hurdle near the $ 26.35-40 region.
On the other hand, the $ 25.25-20 (200-HMA) area now appears to have emerged as strong immediate support. This is closely followed by the key psychological level of $ 25.00, below which the XAG / USD could fall further towards the July monthly lows of around $ 24.00. The downward trajectory could extend further and drag XAG / USD towards $ 24.00 en route to yearly lows, around the $ 23.80-75 region touched in March.
1 Hour Silver Chart (XAG / USD)
Technical levels
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