- Silver attracted some buying on dips near the 100 hourly SMA on Monday.
- The intraday technical setup supports the prospects for additional earnings.
- Bearish oscillators on the daily chart warrant some caution for the bulls.
Silver found decent support near the 100 hourly SMA support and managed to reverse an intraday decline to the $ 23.45-40 region. The commodity was last seen trading near the upper end of its daily trading range, around the $ 23.70-75 area.
The emergence of some buying on the dips follows Friday’s move past the 23.6% Fibonacci level of the steep $ 25.92-$ 22.17 drop. This, in turn, favors bull traders and supports the prospects for additional intraday gains. The positive outlook is reinforced by the fact that the technical indicators on the hourly chart have been gaining positive ground. That said, the oscillators on the daily chart are still deep in bearish territory.
Therefore, any subsequent upward movement is more likely to face strong resistance near the 38.2% Fibonacci level, around $ 24.00. A move further will be seen as a new trigger for the bulls and will pave the way for a further appreciation move. XAG / USD could break through intermediate resistance near the $ 24.35-40 horizontal zone and test the next relevant hurdle marked by the 61.8% Fibonacci level, around the $ 24.55-60 region.
On the other hand, the $ 23.45-40 zone could continue to protect the immediate downside. A convincing break below could spark some technical selling and make XAG / USD vulnerable to challenge the yearly lows, around the $ 22.20 region.
Silver 1 hour chart
Technical levels
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