Silver Price Analysis: XAG/USD seems vulnerable to retest $23.10 support zone
- Silver remains under some selling pressure for the second successive day on Tuesday.
- The intraday technical setup supports prospects for a slide back to the $23.00 mark.
- A sustained strength beyond the $24.00 mark will set the stage for additional gains.
Silver extends the previous day's pullback from a three-day high and continues losing ground for the second successive day on Tuesday. The white metal remains depressed heading into the North American session and is currently placed just below the mid-$23.00s.
Looking at the technical picture, the recent bounce from the vicinity of the $23.00 mark falters near a two-month-old ascending trend line support breakpoint, now turned resistance. A subsequent slide back below the 100-period SMA on the 4-hour chart favours intraday bearish traders. Furthermore, oscillators on hourly charts have again started gaining negative traction and support prospects for further losses.
Hence, some follow-through weakness back towards testing last week's swing low, around the $23.10 area, looks like a distinct possibility. This is closely followed by the $23.00 round figure, below which the XAG/USD could slide towards the $22.60-$22.55 region. The next relevant support is pegged near the $22.10-$22.00 horizontal zone, which if broken decisively will be seen as a fresh trigger for bears.
On the flip side, the daily peak, around the $23.70 region, now seems to act as an immediate hurdle ahead of the $24.00-$24.10 ascending trend-line support-turned-resistance. A sustained strength beyond might shift the bias in favour of bullish traders. The XAG/USD might then surpass an intermediate hurdle near the $24.25 zone and test the multi-month high, around the $24.50-$24.55 region set last week.
Some follow-through buying should pave the wave for a further near-term appreciating move towards reclaiming the $25.00 psychological mark for the first time since April 2022.
Silver 4-hour chart
Key levels to watch