Silver Price Analysis: XAG/USD surrenders modest intraday gains, flat-lines above $23.00
- Silver faces an intraday rejection near the $23.40-$23.50 confluence barrier.
- The mixed technical setup warrants caution before placing aggressive bets.
- Any further pullback, however, might still be seen as a buying opportunity.
Silver struggles to capitalize on its modest intraday uptick and retreats to the $23.00 mark heading into the North American session.
From a technical perspective, the recovery momentum from the vicinity of mid-$22.00s, or over a one-week low touched on Friday, falters near the $23.45-$23.50 confluence hurdle. The said area comprises the 100-hour SMA and the 50% Fibonacci retracement level of the recent pullback from a multi-month top, which should now act as a pivotal point.
A sustained strength beyond will be seen as a fresh trigger for bullish traders and set the stage for some meaningful upside. The XAG/USD might then surpass an intermediate resistance near the $23.70 area and aim to reclaim the $24.00 round figure. That said, oscillators on the daily chart have been losing traction and warrant caution for bulls.
On the flip side, weakness below the $23.00 mark might turn the XAG/USD vulnerable to accelerate the fall back towards last week’s swing low, around the $22.70-$22.65 region. Any subsequent fall, however, is likely to find support near a horizontal resistance breakpoint, around the $22.00 mark, which if broken might shift the bias in favour of bearish traders.