●Market observers note silver's 0.27% rebound to $22.32/oz following a test of critical support at $21.88
●Technical setup reveals conflicting signals with neutral-downtrend bias countered by bullish hammer formation
●Critical resistance levels identified at $22.65 (50-DMA) and $23.25 (200-DMA) for confirmation of trend reversal
The silver market demonstrated resilience during Tuesday's trading session, recovering from Monday's five-week low of $21.88 to establish a foothold near $22.32 per troy ounce. This upward movement of 0.27% occurred amid mixed technical signals that traders are carefully evaluating.
Chart analysis reveals an interesting technical picture for XAG/USD. While the broader trend maintains neutral-to-bearish characteristics, the daily timeframe shows the emergence of a hammer candlestick pattern. This technical formation, appearing after seven consecutive days of lower highs and lows, typically signals potential bullish reversal when occurring after extended declines.
For market participants anticipating continued upward movement, several key technical levels warrant attention. Initial resistance appears at the 50-day moving average of $22.65, with subsequent barriers at the 200-DMA ($23.25) and the October 20 peak of $23.69. Successful penetration of these levels could confirm the beginning of a more sustained bullish phase for the white metal.
Conversely, failure to maintain current support levels could see silver prices retesting recent lows. A decisive break below $21.87 (October 13 low) might trigger additional downward momentum, potentially targeting $20.69 (October 4 swing low) and the year's lowest point at $19.90. Market participants are advised to monitor these technical levels closely for directional clues.
XAG/USD Technical Analysis – Daily Chart Perspective
