Silver Price Analysis: XAG/USD sits near two-week top, bulls await a move beyond 38.2% Fibo.

• Silver pauses a three-day-old ascending trend near the 38.2% Fibo. resistance.
• The technical setup supports prospects for a further near-term appreciating move.
• Any meaningful dip could be seen as a buying opportunity near the 23.00 mark.

Silver enters a bullish consolidation phase and oscillates in a narrow range around the $23.30 region, just below its highest level in more than two weeks touched earlier this Tuesday.

From a technical perspective, the XAG/USD, for now, seems to have paused its recent recovery from the $22.20 area, or a nearly two-month low, near a resistance marked by the 38.2% Fibonacci retracement level of the July-August downfall. A sustained strength beyond the said barrier will be seen as a fresh trigger for bullish traders and pave the way for a further near-term appreciating move.

Given that oscillators on the daily chart have just started moving in the positive territory, the XAG/USD could then climb to 50% Fibo. resistance near the $23.75 region. The momentum could get extended to the $24.00-$24.10 confluence, comprising the 100-day SMA and the 61.8% Fibo. level. Some follow-through buying will suggest that a nearly one-month-old downfall has run its course.

On the flip side, any meaningful pullback now seems to find decent support near the $23.00 round figure, which now coincides with the 23.6% Fibo. level. This is followed by the $22.70-$22.65 support zone, which if broken decisively will expose the multi-month low, around the $22.10 region touched in June. This is followed by the $22.00 mark, below which Sliver could slide to the $21.55-$21.50 area.

The downward trajectory could get extended further towards the $21.00 round figure en route to the $20.60 area, below which the XAG/USD could drop to challenge the $20.00 psychological mark.

Silver daily chart

Technical levels to watch