Silver Price Analysis: XAG/USD consolidates in a range around mid-$23.00s, 23.6% Fibo. level

• Silver remains confined in a range for the second successive day on Tuesday.
• The technical setup warrants some caution before placing fresh directional bets.
• A move beyond the $24.00 mark is needed to support prospects for further gains.

Silver continues with its struggle to gain any meaningful traction and oscillates in a narrow trading band for the second straight day on Tuesday. The white metal extends its sideways consolidative price move through the early European session and currently trades around mid-$23.00s, representing the 23.6% Fibonacci retracement level of the downfall witnessed in May.

From a technical perspective, last week's rejection slide from the $24.00 mark, or the 38.2% Fibo. level, showed some resilience below the 200-hour Simple Moving Average (SMA) on Monday. The latter, currently pegged around the $23.35-$23.30 area, should act as a pivotal point for intraday traders. Some follow-through selling below the said support might turn the XAG/USD vulnerable to accelerate the fall below testing the $23.00 round figure.

The downward trajectory could get extended further towards the next relevant support near the $22.70-$22.65 region, or over a two-month low touched in May. The XAG/USD could eventually drop to the $22.00 mark, which represents the very important 200-day SMA and help limit any further losses.

On the flip side, the overnight swing high, around the $23.85 region, now seems to act as an immediate barrier ahead of the $24.00 mark. This is closely followed by the $24.15-$24.20 horizontal resistance. A sustained strength beyond the latter will be seen as a fresh trigger for bullish traders and lift the XAG/USD further towards the 50% Fibo. level, around the $24.45-$24.50 region en route to the $24.80 zone, or the 61.8% Fibo. level, and the $25.00 psychological mark.

Silver 1-hour chart

Key levels to watch