Silver Price Analysis: XAG/USD bulls await move beyond $19.00 strong resistance

• Silver edged higher for the second straight day and moved further away from a two-year low.
• The set-up favours bearish traders and supports prospects for the emergence of fresh selling.
• Sustained strength beyond the $19.50 zone is needed to negate the near-term negative bias.

Silver gained some positive traction for the second successive day on Monday and moved further away from a two-year low, around the $18.15 region touched last week. The white metal held on to its modest gains through the early European session and was last seen trading just below the $19.00 round figure.

From a technical perspective, the $18.90-$19.00 area represents a short-term trading range support breakpoint and now coincies with the 50-period SMA on the 4-hour chart. Sustained strength beyond might trigger a short-covering move and lift the XAG/USD back towards the $19.45-$19.50 supply zone.

Technical indicators on the daily chart have just recovered from the oversold zone, though are still holding deep in the bearish territory. This, in turn, suggests that the attempted recovery towards the aforementioned barrier could still be seen as a selling opportunity and fizzle out rather quickly.

On the flip side, the $18.50 horizontal zone now seems to protect the immediate downside ahead of the YTD low, around the $18.15 region. This is closely followed by the $18.00 mark, which if broken decisively would be seen as a fresh trigger for bearish traders and pave the way for additional losses.

The XAG/USD might then accelerate the slide towards the $17.45-$17.40 intermediate support en-route the $17.00 round-figure mark. The downward trajectory could further get extended and drag spot prices to the next relevant support near the $16.70-$16.60 region.

Silver 4-hour chart

Key levels to watch