Silver Corrects, Is Bullish Potential Still Open?
Silver (XAG/USD) continued its sideways consolidative price movement for the third straight day and traded below the mid-$36.00s during the Asian session on Tuesday (06/17). Meanwhile, the white metal 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 may still be categorized as a bullish consolidation phase against the backdrop of a strong rally from April monthly swing lows. Further, positive oscillators on the daily chart suggest that the path of least resistance for XAG/USD is to the upside.
However, any subsequent move higher might face some resistance near multi-year tops, around the $36.85-$36.90 area. Sustained strength above the last level will reaffirm the constructive outlook and allow XAG/USD to resume its well-established uptrend beyond the $37.00 level, towards testing February 2012 swing highs, around mid-$37.00s.
On the flip side, any corrective slide below the $36.00 level is likely to attract some buyers who took a dip near last week’s low, around the $35.45 area. However, a convincing break below the last level could turn XAG/USD vulnerable to weakening below the $35.00 psychological mark and extend the slide towards the $34.55-$34.50 region en-route the $34.00 round figure.
Source: FXStreet
