Silver Price Analysis: XAG/USD seems poised to appreciate further and aim to reclaim $21.00

Silver oscillates in a narrow band and consolidates its recent gains to a multi-week high.

The overnight breakout through the 50-DMA/50$ Fibo. confluence favours bullish traders.

Any meaningful dips could now be seen as a buying opportunity and remain short-lived.

Silver consolidates the previous day's strong gains to a six-week high and remains confined in a range above mid-$20.00s heading into the North American session.

The overnight breakout through the $20.30-$20.35 confluence - comprising the 50-day SMA and the 50% Fibonacci retracement level of the $22.52-$18.15 downfall - favours bullish traders. Positive technical indicators on the daily chart add credence to the constructive set-up and support prospects for a further near-term appreciating move.

Hence, a subsequent move up towards the 61.8% Fibo. level, around the $20.85 area, now looks like a distinct possibility. Some follow-through buying beyond the $21.00 mark would be seen as a fresh trigger for bulls and lift the XAG/USD towards the $21.40-$21.50 intermediate resistance en-route the $22.00 round-figure mark.

The latter coincides with the 100-day SMA and should keep a lid on any further gains for the XAG/USD, at least for the time being. That said, a convincing break above should pave the way for an extension of the recent recovery move from a two-year low, around the $18.15 region touched on July 14.

On the flip side, the $20.35-$20.30 confluence resistance breakpoint now seems to protect the immediate downside ahead of the $20.00 psychological mark. This is closely followed by the $19.80-$19.75 region (38.2% Fibo. level), Friday's swing low around the $19.55 area, and the 23.6% Fibo. level support, around the $19.20 zone.

Failure to defend the aforementioned support levels would negate any near-term positive bias and shift the bias back in favour of bearisha traders. The XAG/USD would then turn vulnerable to weaken further below the $19.00 mark, towards the next relevant support near the $18.40 area en route to the YTD low, around the $18.15 region.

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Silver Price Analysis: XAG/USD sticks to gains near $24.60-65 area, bearish bias remains

Silver gained some positive traction on Tuesday and snapped three days of the losing streak.

The mixed technical setup warrants some caution before positioning for any further upside.

Sustained move beyond the $25.00 mark is needed to support any near-term positive bias.

Silver built on the overnight bounce from the $24.30-$24.25 region and gained some positive traction on Tuesday, snapping three successive days of the losing streak to a four-day low. The white metal held on to its modest gains through the first half of the European session and was last seen trading around the $24.65-$24.70 zone.

From a technical perspective, the XAG/USD once again showed some resilience below the 50% Fibonacci retracement level of the $22.00-$26.95 move up. The subsequent move up supports prospects for some additional intraday gains, though neutral technical indicators on the daily chart warrants caution for aggressive bullish traders.

Hence, any further positive move might continue to confront stiff resistance and remain capped near the 38.2% Fibo. level, around the $25.00 psychological mark. A convincing breakthrough the said handle has the potential to lift the XAG/USD towards the $25.35-$25.40 intermediate hurdle, en-route the 23.6% Fibo., around the $25.75-$25.80 area.

On the flip side, weakness below the mid-$24.00 mark, or the 50% Fibo. level now seems to find some support near the overnight swing low, around the $24.30-$24.25 region. Some follow-through selling would make the XAG/USD vulnerable to accelerate the slide towards retesting sub-$24.00 levels, or the one-month low touched in March.

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