Silver witnessed a modest intraday pullback from the $22.80 confluence hurdle.
Neutral technical indicators warrant caution before placing fresh directional bets.
Silver struggled to capitalize on its modest intraday uptick to one-and-half-week tops and once again started retreating from the $22.80 resistance zone. The commodity refreshed daily lows during the early North American session and was last seen hovering around mid-$22.00s, down 0.40% for the day.
The mentioned barrier marks a confluence region comprising of the 38.2% Fibonacci level of the $24.87-$21.42 downfall and 100-period EMA on the 4-hour chart. This should now act as a key pivotal point for short-term traders and help determine the next leg of a directional move for the XAG/USD.
Meanwhile, technical indicators on the daily chart – though have recovered from the bearish territory – have been struggling to gain any meaningful traction. Moreover, neutral oscillators on hourly charts haven’t been supportive of a firm intraday direction, warranting caution for aggressive traders.
From current levels, the 23.6% Fibo. level, around the $22.25 area, should protect the immediate downside. A convincing break below might turn the XAG/USD vulnerable to break below the $22.00 mark and slide further towards challenging last week’s swing lows, around the $21.45-40 region.
On the flip side, momentum beyond the $22.80 confluence hurdle might struggle to find acceptance above the $23.00 mark and falter near the 50% Fibo. level resistance. some follow-through buying beyond the $23.10-15 region will be seen as a fresh trigger for bulls and set the stage for further gains. The XAG/USD might then accelerate the momentum towards the 61.8% Fibo. level, around the $23.55-60 region, before eventually aiming to reclaim the $24.00 round-figure mark.
Silver 4-hour chart
