- Silver was based on its solid recovery move from the $ 22.00 level, or the yearly lows touched on Monday.
- Mixed oscillators on hourly / daily charts deserve some caution before placing new bullish bets.
At payment It gained some positive traction on Tuesday and moved away from the lowest level since November 2020, around the $ 22.00 zone touched the day before. XAG, for now, appears to have broken three consecutive days of the losing streak and was last seen trading in the $ 22.60-65 zone, an increase of more than 1.50% on the day.
The mentioned area is just before the 23.6% Fibonacci level of the recent bearish leg of $ 24.87-$ 22.04. Some follow-up selling will be seen as a new trigger for bull traders and set the stage for additional gains. The outlook is bolstered by the fact that technical indicators on the hourly charts have been gaining positive ground.
That said, the oscillators on the daily chart are still deep in bearish territory and warrant some caution for bullish traders. Therefore, any subsequent upward movement could still be seen as a selling opportunity and risks quickly disappearing near $ 23.00. This is closely followed by the 38.2% Fibonacci level, near the $ 23.10 zone.
On the other hand, the $ 22.25 zone now appears to protect the immediate drop before the yearly lows around $ 22.00. A convincing break below will be seen as a new trigger for bearish traders and will make the XAG / USD be vulnerable. Silver could further accelerate the slide to test the September 2020 lows of around $ 21.65.
4-hour XAG chart