XAG / USD declines from three-week highs, rises modestly around $ 24.00

• XAG / USD was stable around $ 24.00 and the bias appears to be tilted in favor of bullish traders.
• Mixed oscillators warrant some caution before positioning for any further appreciation moves.

At payment it struggled to preserve modest intraday gains to three-week highs and was last seen hovering near the lower end of its intraday trading range, around $ 24.00.

Given Friday’s move past the 38.2% Fibonacci level of the $ 26.00-$ 22.17 drop, the short-term bias still appears to be skewed in favor of bullish traders. The constructive setup is bolstered by the fact that the oscillators on the hourly charts are still comfortably held in positive territory.

That said, the technical indicators on the daily chart, although they have been recovering from lower levels, are yet to confirm the positive outlook. This warrants some caution for aggressive bull traders and makes it wise to wait for some follow-up purchases before positioning for more profit.

From current levels, immediate resistance is near 50% of the Fibonacci level, around the $ 24.35-40 zone, above which the XAG / USD seems ready to extend momentum. The bulls could then aim to break above the 61.8% Fibonacci level, around the $ 24.75-80 zone and regain the key psychological level of $ 25.00.

On the other hand, any significant retracement now appears to find decent support near the 23.6% Fibonacci level, around the $ 23.45-40 zone. The sustained weakness below could spark some technical selling and make the XAG / USD vulnerable to accelerate the slide further towards the round $ 23.00 level.

Some subsequent selling will be seen as a new trigger for bearish traders and will set the stage for a drop towards intermediate support near the $ 22.50 zone. XAG / USD could eventually drop to challenge the yearly lows, around the $ 22.20-15 zone touched earlier this month.

4 hour silver chart

Technical levels