XAG / USD tests 23.6% Fibo. Level, about $ 22.65-70 range
- Silver built on its good rebound from $ 22.00 or the YTD low hit on Monday.
- Mixed oscillators on hourly / daily charts require some caution before new bullish bets are placed.
Silver gained somewhat positive momentum on Tuesday, moving away from its lowest level since November 2020, around the $ 22.00 mark hit the day before. The commodity appears to have had three consecutive days of losing streak for now, last trading around the $ 22.60-65 region, up over 1.50% for the day.
The mentioned range is just ahead of the 23.6% Fibonacci level of the recent decline from $ 24.87 to $ 22.04. Some follow-up sales are seen as a new trigger for bullish traders and set the stage for additional profits. The outlook is reinforced by the fact that the technical indicators on the hourly charts have gained in positive impact.
However, the daily chart’s oscillators are still deep in the bearish territory and bullish traders are cautioned. As such, any subsequent bullish move could still be viewed as a selling opportunity and risk to fizzle out quickly near the $ 23.00 mark. Closely followed by 38.2% Fibo. Level, near the $ 23.10 region.
On the flip side, the $ 22.25 area now appears to be protecting the immediate downward move from the YTD lows around the $ 22.00 level. A convincing break downside is seen as a new trigger for bearish traders and makes the XAG / USD vulnerable. The commodity could then further accelerate the decline to test September 2020 swing lows around the $ 21.65 region.