- The price of Silver remains within a range for the second day in a row.
- The technical situation warrants some caution before opening new directional bets.
- A move above the $24.00 level is needed to support the prospects for further gains.
The price of Silver (XAG/USD) continues its struggle to gain significant traction and trades within a tight range for the second day in a row on Tuesday. The white metal has consolidated its sideways trend during the early part of the European session and is currently trading around $23.50, which represents the 23.6% Fibonacci retracement of the decline recorded in May.
From a technical standpoint, last week’s fall from the $24.00 level, or the 38.2% Fibonacci, did show some resistance below the 200 hourly simple moving average (SMA) on Monday. The latter, currently around $23.35-$23.30, should serve as a benchmark for intraday traders. If XAG/USD were to continue to fall below said support, it could accelerate the decline below the $23.00 zone.
The downside trajectory could extend further towards the next relevant support near the $22.70-$22.65 region, just above a two-month low hit in May. XAG/USD could go as far as the $22.00 level, which represents the important 200-day SMA and would help limit any further losses.
On the other hand, the previous day’s high, around the $23.85 region, now seems to act as an immediate barrier ahead of the $24.00 level. It is closely followed by horizontal resistance at $24.15-$24.20. Sustained strength above this last level will be seen as a new catalyst for the bulls and lift the XAG/USD further towards the 50% Fibonacci around the $24.45-$24.50 region on the way to the $24.45-$24.50 region. $24.80, the 61.8% Fibonacci, and the psychological level of $25.00.
Silver 1 hour chart
Silver additional technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
