- Silver edges higher on Tuesday, though it remains confined in a multi-day-old range.
- The bullish technical setup supports prospects for an eventual break to the upside.
- A corrective slide below the $36.00 mark might still be seen as a buying opportunity.
Silver (XAG/USD) extends its sideways consolidative price move for the third consecutive day and trades below mid-$36.00s during the Asian session on Tuesday. The white metal, meanwhile, remains within striking distance of its highest level since February 2012 touched last week, and seems poised to appreciate further.
From a technical perspective, the range-bound price action witnessed over the past week or so might still be categorized as a bullish consolidation phase against the backdrop of a strong rally from the April monthly swing low. Furthermore, positive oscillators on the daily chart suggest that the path of least resistance for the XAG/USD is to the upside.
Any subsequent move higher, however, might confront some resistance near the multi-year peak, around the $36.85-$36.90 area. A sustained strength beyond will reaffirm the constructive outlook and allow the XAG/USD to extend a well-established uptrend beyond the $37.00 mark, towards testing the February 2012 swing high, around mid-$37.00s.
On the flip side, any corrective slide below the $36.00 mark is likely to attract some dip-buyers near last week’s low, around the $35.45 area. A convincing break below the latter, however, could make the XAG/USD vulnerable to weaken below the $35.00 psychological mark and extend the fall towards the $34.55-$34.50 region en route to the $34.00 round figure.
Silver 4-hour chart
