- Silver gained positive traction for the second straight session on Wednesday.
- Sustained move past the $ 22.65-70 confluence paved the way for further gains.
- Bearish oscillators on the daily chart warrant caution for aggressive bull traders.
At payment It gained traction for the second day in a row and rebounded further from the lowest level since November 2020, around the $ 22.00 zone touched on Monday. The metal rose to three-day highs around the $ 22.90 zone during the first half of trading action on Wednesday, although it lacked bullish conviction.
Looking at the technical landscape, momentum pushed XAG / USD through the $ 22.65-70 confluence hurdle, which comprises the 100 hourly SMA and the 23.6% Fibonacci level from the recent $ 24.87-$ 22.04 dip. However, the intraday pullback from near $ 23.00 warrants caution for aggressive bull traders.
Meanwhile, the technical indicators on the daily chart remain deep in the negative territory and have been losing positive traction on the 1 hour chart. The setup seems skewed in favor of bearish traders, furthermore making it wise to wait for some follow-up purchases before positioning for any further gains.
From current levels, the $ 22.50 zone could protect the immediate slide ahead of the overnight swing lows, around the $ 22.25-20 region. This is followed by $ 22.00 round level (yearly lows), which if decisively broken will be seen as a new trigger for bearish traders and will make the XAG / USD vulnerable to further decline.
The next relevant support is tied near the September 2020 lows, around the $ 21.65 region, before XAG / USD finally drops to challenge the $ 21.00 level for the first time since July 2020.
On the other hand, momentum beyond the $ 22.90 area is likely to face stiff resistance near the 38.2% Fibonacci level around the $ 23.10 area. Sustained force beyond could trigger a short hedging move and lift XAG / USD towards the 50% Fibonacci level around the $ 23.45-50 region, en route to the $ 23.80-85 bid zone (Fibonacci 61.8%). ).
XAG / USD Silver Chart
Technical levels
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