Silver (XAG/USD) has attracted dip-buying interest near the $23.65-$23.60 region on Tuesday, flirting with the year-to-date peak in the first half of the European session. The white metal is currently trading just below the $24.00 mark, aiming to extend the breakout momentum witnessed in the previous session through the crucial $23.30-$23.35 confluence hurdle.
This confluence point consists of the 100- and the 200-day Simple Moving Averages (SMA) and is expected to act as a pivotal level for XAG/USD. A meaningful corrective slide is likely to find support near this resistance-turned-support zone, keeping losses limited near the $23.00 round figure. However, a sustained move lower could indicate a pause in the one-week-old rally, opening the door for deeper losses.
If the downside momentum prevails, XAG/USD may accelerate its slide towards the $22.50-$22.45 intermediate support before potentially dropping to sub-$22.00 levels, reaching the two-month trough touched in January and retested in February. The bearish trajectory could extend further, targeting the next relevant support near the $21.40-$21.35 region. However, caution is warranted for bearish traders given the positive signals from daily chart oscillators.
On the upside, overcoming the $24.00 mark might face resistance around the $24.30-$24.35 region, followed by the $24.50 supply zone. Further strength beyond these levels could see XAG/USD reclaim the $25.00 psychological mark and advance towards the $25.45-$25.50 intermediate hurdle on the way to the $26.00 neighborhood, marked by the December 2023 swing high. Traders are closely monitoring key resistance and support levels for potential trend continuation or reversal.
