- Silver regained positive traction on Tuesday, erasing modest losses overnight.
- The technical setup favors bullish traders and supports the prospects for additional earnings.
- Only a sustained break below $ 27.00 will negate the short-term positive bias.
At payment it drew some buying in the dips on Tuesday and halted the previous day’s retracement slide from the highest level since Feb. 25. The white metal was last seen trading near the $ 27.40-50 region, up around 0.40% for the day.
From current levels, any subsequent upward movement could face resistance near the swing highs overnight, around the $ 27.85 region. This coincides with the 61.8% Fibonacci level of the $ 30.07 – $ 23.78 drop and is followed by $ 28.00.
A convincing advance will be seen as a new trigger for bull traders and will pave the way for an extension of the recent rally from annual lows hit in March. The constructive outlook is bolstered by bullish technical indicators on the daily chart.
Therefore, a certain follow-up force to test the next relevant hurdle, near the $ 28.80-$ 85 bid zone, is still a clear possibility. The momentum could allow the bulls to head back to regain the $ 29.00 level for the first time since early February.
On the other hand, any significant slippage could be seen as an opportunity to initiate new bullish positions and remain capped near $ 27.00. The latter coincides with the 50% Fibonacci level and should act as a key fundamental point.
Sustained weakness below could spark some technical selling and accelerate the slide to the mid-$ 26.00 mark. The corrective slide has the potential to drag XAG / USD further towards the test of confluence support near $ 26.20-10, comprising a 38.2% Fibonacci level, 100-day SMA and a short-term rising trend line. .
Daily chart
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
