Silver Price Analysis: XAG/USD eases from three-week tops, up little around $24.00

• XAG/USD held steady around the $24.00 mark and bias seems tilted in favour of bullish traders.
• Mixed oscillators warrant some caution before positioning for any further appreciating move.

Silver struggled to preserve modest intraday gains to three-week tops and was last seen hovering near the lower end of its intraday trading range, around the $24.00 mark.

Given Friday's move beyond the 38.2% Fibonacci level of the $26.00-$22.17 decline, the near-term bias still seems tilted in favour of bullish traders. The constructive setup is reinforced by the fact that oscillators on hourly charts are still holding comfortably in the positive territory.

That said, technical indicators on the daily chart – though have been recovering from lower levels – are yet to confirm the positive outlook. This warrants some caution for aggressive bullish traders and makes it prudent to wait for some follow-through buying before positioning for any further gains.

From current levels, immediate resistance is pegged near the 50% Fibo. level, around the $24.35-40 region, above which the XAG/USD seems all set to extend the momentum. Bulls might then aim to surpass the 61.8% Fibo. level, around the $24.75-80 region and reclaim the key $25.00 psychological mark.

On the flip side, any meaningful pullback now seems to find decent support near the 23.6% Fibo. level, around the $23.45-40 region. Sustained weakness below might prompt some technical selling and turn the XAG/USD vulnerable to accelerate the fall further towards the $23.00 round-figure mark.

Some follow-through selling will be seen as a fresh trigger for bearish traders and set the stage for a slide towards intermediate support near the mid-$22.00s. The XAG/USD could eventually drop to challenge YTD lows, around the $22.20-15 region touched earlier this month.

Silver 4-hour chart

Technical levels to watch