Silver Price Analysis: XAG/USD holds steady near $23.00; bulls maintain control of 61.8% Fibonacci.
- Silver is oscillating in a tight trading band around $23.00 on Tuesday.
- The setup favours bullish traders and supports prospects for further near-term gains.
- A convincing break below $22.00 is needed to negate the constructive outlook.
Silver is struggling for firm intraday direction on Tuesday, oscillating between tepid gains and marginal losses for the first half of the European session. The white metal is currently sitting around the $23.00 mark, almost unchanged for the day, and appears poised to continue its recent uptrend of the past three weeks.
The intraday tick down finds some support near the 61.8% Fibonacci retracement level of the recent pullback from a multi-month high. Furthermore, the daily chart’s oscillators are comfortably holding in positive territory and are far from being in overbought territory. This, in turn, Favors bullish traders and suggests that the path of least resistance for XAG/USD is up.
However, it is still prudent to wait for some follow-up buying beyond the overnight swing high near the $23.25 area before bracing for more gains. XAG/USD could then clear the $23.50 hurdle (the multi-week high set last Friday) and gain momentum towards the $24.00 mark on the way to the multi-month high around the 24-touched in February, Accelerate $65 region.
On the upside, weakness below the $22.80 zone may find some support near the $22.50 area. Some follow-up selling has the potential to drag the XAG/USD towards the $22.20 region. This is followed by the $22.00 level and the $21.75-$21.70 support (38.2% Fibonacci levels). Failure to defend said support levels will negate the positive outlook and shift the short-term bias in Favor of the bears.