Silver gained some positive traction and shot to a near three-week high on Tuesday
Silver regained positive traction on Tuesday and snapped two successive days of the losing streak. The momentum pushed spot prices to a nearly three-week high, around the 22.65-70 region during the European session. Bulls are now be looking to build on the momentum beyond the 100-period EMA on the 4-hour chart and extend the recent bounce from the YTD low, around the 21.40 area touched last week. That said, mixed technical indicators on hourly/daily charts warrant some caution.
Oscillators on the daily chart – though have been recovering from lower levels – are still holding in the bearish territory, while RSI on the 1-hour chart is already flashing overbought conditions. Nevertheless, the intraday set-up supports prospects for further gains. From current levels, any subsequent move up is likely to confront stiff resistance near the 22.80-85 area. Some follow-through buying, leading to a move beyond the 23.00 mark could push the XAG/USD towards the next relevant hurdle near the 23.30-35 region. On the flip side, the 22.20-15 area now seems to protect the immediate downside ahead of the 22.00 round-figure mark. A further decline would negate the positive bias and turn the XAG/USD vulnerable to slide back to restest YTD lows support, around the 21.40 region.