- Silver edgeshigher on Tuesday and recoversa area of the previous days decline.
- The set-up still favours bearish traders and supports prospects for further losses.
- Sustained strength beyond the $19.50 is required to negate the bearish outlook.
Silver gainssome positive traction on Tuesday and for the present time, appears to have snapped a two-day losing streak. The white metal held to the modest intraday gains through the first European session and was last seen hovering close to the daily high, around mid-$18.00s.
Considering the broader picture, the XAG/USD has been oscillating in a familiar range in the last one-and-a-half about a week. Given the recent fall from mid-$22.00s or the June monthly high, the rangebound price moves could possibly be categorized as a bearish consolidation phase.
Increasing this, repeated failures close to the $19.00 round figure claim that the near-term selling bias might be definately not being over. Furthermore, oscillators on the daily chart are holding deep in the bearish territory and add credence to the negative outlook.
Hence, any subsequent progress might be regarded as a selling opportunity close to the $19.00 mark. Some follow-through buying gets the potential to lift the XAG/USD further, although momentum will probably remain capped close to the $19.40-$19.50 heavy supply zone.
On the other hand, the YTD low, round the $18.20-$18.15 region, will probably protect the immediate downside prior to the $18.00 mark. A convincing break below will be regarded as a fresh trigger for bearish traders and set the stage for an additional depreciating move.
The XAG/USD could then accelerate the downfall towards the $17.45-$17.40 intermediate support en-route to the $17.00 mark. The bearish trend could easily get extended and spot prices could eventually drop to check another relevant support close to the $16.70-$16.60 region.
Silver 4-hour chart
Key levels to view
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