- Silver attracted some buying in the dips on Tuesday, although it remained below two-week highs.
- The bias favors the bulls and supports the outlook for a move towards the $ 24.80-85 zone.
La plata (XAG) It reversed modest intraday losses and was last seen hovering near daily highs, just below $ 24.50, or two-week highs touched the previous day.
Given the sustained move overnight past the $ 24.20-15 confluence barrier, the appearance of some buying on the dips on Tuesday favors bullish traders. The outlook is bolstered by the fact that the technical indicators on the hourly / daily charts are comfortably in bullish territory and are still far from being in the overbought zone.
Therefore, a further move to test the October monthly swing highs around the $ 24.80-85 zone remains a clear possibility. This is followed by the key psychological level $ 25.00. The latter coincides with the 50% Fibonacci level of the $ 28.75-21.42 drop, which if decisively cleared will set the stage for additional short-term gains.
The XAG / USD could accelerate the momentum towards the next relevant hurdle near the key zone of $ 25.55-60 before eventually targeting to test the 61.8% Fibonacci level, around the round level of $ 26.00.
On the other hand, the $ 24.20-15 resistance breakout point, which comprises the 100-day SMA and the 38.2% Fibonacci level, now appears to protect the immediate drop before the $ 24.00 level. Any subsequent decline could still be seen as a buying opportunity near the $ 23.70 zone, which should help limit the decline near the $ 23.50 support zone.
If the mentioned support levels are not defended, the XAG / USD would become vulnerable to retest a strong support around the $ 23.00 level. Some subsequent selling could change the bias in favor of bearish traders and expose the next relevant support near $ 22.50. The downward trajectory could extend towards annual lows, around the key $ 21.40 zone touched in September.
XAG daily chart
Technical levels
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