Silver Price Analysis: Bulls look to seize control near 50% Fibo., move beyond 50-DMA awaited

• Silver reverses modest intraday downtick to the $20.00 neighbourhood.
• The technical setup supports prospects for additional near-term gains.
• Bulls might still wait for sustained strength beyond the 50-day SMA.

Silver attracts some dip-buying near the $20.15-$20.10 area on Tuesday and inches back closer to a one-month peak touched the previous day. The white metal climbs back above the 50% Fibonacci retracement level of the $22.52-$18.15 slide, though bulls might wait for a sustained move beyond the 50-day SMA before placing fresh bets.

Technical indicators on the daily chart, meanwhile, are holding comfortably in the positive territory and have also eased from the slightly overbought territory on the 4-hour chart. This, in turn, supports prospects for an eventual break through the aforementioned barrier around the mid-$20.00s and a further near-term appreciating move.

The XAG/USD might then aim to surpass the 61.8% Fibo. level, around the $20.85 region, and reclaim the $21.00 round figure. The momentum could further get extended and lift spot prices towards the next relevant hurdle near the $21.40-$21.50 area en route to the $22.00 mark and the 100-day SMA, currently around the $22.10-$22.15 region.

On the flip side, any meaningful slide might continue to find decent support ahead of the $20.00 psychological mark. This is followed by the 38.2% Fibo. level, around the $19.80 region. Failure to defend the said support levels would suggest that the recovery from the YTD low has run out of steam and shift the bias in favour of bearish traders.

The subsequent decline has the potential to drag the XAG/USD towards the 23.6% Fibo. level, around the $19.15-$19.10 area, en-route the $19.00 mark. Some follow-through selling would expose the $18.50 intermediate support, below which spot prices could slide further to retesting the YTD low, around the $18.15 region touched on July 14.

Silver daily chart

Key levels to watch