Silver Price Analysis: XAG/USD sticks to gains around $25.40 area, bullish potential intact

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Silver Price Analysis: XAG/USD sticks to gains around $25.40 area, bullish potential intact
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Silver Price Analysis: XAG/USD sticks to gains around $25.40 area, bullish potential intact Silver Commodities Technical Analysis XAGUSD

or a fresh one-year high. The white metal sticks to its modest intraday gains around the $25.45 region heading into the North American session and seem poised to prolong its recent appreciating move witnessed over the past month or so.

The recent breakout through the $24.30-$24.40 strong horizontal barrier and a subsequent move beyond the $25.00 psychological mark add credence to the near-term positivefor the XAG/USD. That said, the slightly overbought Relative Strength Index on the daily chart might hold back traders from placing aggressive bets and keep a lid on any meaningful upside, at least for the time being.

In the meantime, any intraday slide might continue to attract fresh buyers and remain limited near the $25.00 mark. The latter should act as a pivotal point, which if broken decisively might prompt some technical selling and drag the XAG/USD towards the $24.30-$24.40 resistance-turned-support en route to the $24.00 mark. A convincing break below the latter might shift the bias in favour of bearish traders.

On the flip side, bulls might now wait for some follow-through buying beyond the YTD peak, around the $26.10 area touched on Friday, before placing fresh bets and positioning for a further appreciating move. The XAG/USD might then climb towards the next relevant hurdle near the $26.40-$26.50 zone before eventually aiming to test the 2022 peak, just ahead of the $27.00 round-figure mark.

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