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- Silver slipped down Tuesday and broke off winning streak for three consecutive days.
- Mixed technical indicators on hourly / daily charts require caution for aggressive traders.
Silver saw some selling on Tuesday, falling to an intraday low of $ 22.40 during the first part of the trade, but recovering somewhat thereafter. The commodity recently hovered around the $ 22.55 area, still over 0.50% for the day.
From a technical standpoint, the recent positive move seen over the past three trading sessions has stalled near a resistance marked by the 38.2% fibonacci level of the decline from $ 24.87 to $ 21.42 is. The aforementioned barrier coincides with the 100-period SMA on the 4-hour chart and should now serve as an important fulcrum for short-term traders.
In the meantime, the technical indicators on the hourly charts are moving back into positive territory, but they have not yet had any significant impact on the daily chart. As such, any subsequent move beyond the aforementioned confluence hurdle could still struggle to find acceptance above the $ 23.00 mark and stall near 50% Fibo. Level resistance.
However, some follow-up purchases beyond the $ 23.10-15 region are seen as a new trigger for bullish traders and set the stage for additional profits. The XAG / USD could then accelerate the momentum towards the 61.8% Fibo. Levels, roughly in the range of $ 23.55 to $ 60, before finally attempting to recapture the round number of $ 24.00.
On the flip side, the immediate support is firmly anchored near the 23.6% Fibo. Level, roughly in the range of USD 22.25. A convincing break on the downside could leave XAG / USD vulnerable to drop below $ 22.00 and back towards the challenging swing lows of last week around the $ 21.45-40 area.
Silver 4 hour chart
Technical levels to watch
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