Silver Yet to Move Off $37 — Market Direction Still Undecided!
Silver (XAG/USD) struggled to capitalize on its goodish overnight rebound from the $36.15 region, or a multi-day trough, and oscillated in a narrow range during the Asian session on Tuesday. The white metal is currently trading around the $36.80 area, almost unchanged for the day amid a mixed technical setup.
The daily Relative Strength Index (RSI, 14) remains above 50, although the Moving Average Convergence Divergence (MACD) histogram and the signal line are yet to confirm a bullish bias. This, in turn, suggests that any move beyond the $37.00 mark could stall near the $37.30-$37.35 region, or the highest level since February 2012 touched earlier this month. However, some follow-through buying would set the stage for an extension of the nearly three-month-old uptrend.
On the flip side, the $36.50-$36.45 area could offer immediate support to XAG/USD ahead of the $36.15-$36.10 region. A further decline below the $36.00 mark could extend towards the $35.50-$35.40 horizontal zone. The latter represents the lower boundary of a short-term trading range held for the past one month or so and should act as a pivotal point. Hence, a convincing break below the same will shift the near-term bias back in favor of bearish traders.
XAG/USD could then accelerate the fall towards the next relevant support near the $35.00 psychological mark. A subsequent fall has the potential to drag the white metal towards an intermediate support near $34.75 en-route the $34.45 region.
Source: (ayu-newsmaker)
