• Silver edges higher on Tuesday and stalls a two-day corrective decline from a one-year top.
• The technical setup still supports prospects for the resumption of a one-month-old uptrend.
• A convincing break below the $24.00 mark is needed to negate the near-term positive bias.

Silver edges higher during the early European session on Tuesday and looks to build on the overnight modest bounce from the $24.80 area, or a one-week low. The white metal is currently placed just above the $25.00 psychological mark and for now, seems to have stalled its retracement slide from a one-year high, around the $26.10 region touched last Friday.

From a technical perspective, the recent breakout through the $24.30-$24.40 strong horizontal barrier was seen as a fresh trigger for bullish traders and supports prospects for additional gains. Moreover, the Relative Strength Index (RSI) on the daily chart has also eased from the overbought territory and adds credence to the near-term positive outlook for the XAG/USD.

Bulls, however, might wait for some follow-through buying beyond the $25.50 horizontal resistance before placing fresh bets. The XAG/USD might then make aim to conquer the $26.00 mark. The momentum could get extended further towards the next relevant hurdle near the $26.40-$26.50 region en route to the 2022 peak, just ahead of the $27.00 round-figure mark.

On the flip side, weakness below the overnight swing low, around the $24.80 area, is likely to find decent support and attract fresh buyers near the $24.40-$24.30 horizontal resistance breakpoint. This is followed by support near the $24.00 round-figure mark, which if broken decisively will negate the positive outlook and shift the near-term bias in favour of bearish traders.

The corrective decline could then drag the XAG/USD towards the $23.40-$23.35 static support en route to the $23.00 round-figure mark.

Silver daily chart

Key levels to watch