Silver extends its recent bounce from the $17.55 area, its lowest level since July 2020, set last week by gaining traction for the third straight day today, Tuesday, September 6th, 2022.
The XAG/USD is currently eyeing a resistance marked by the top boundary of a downward sloping channel extending from the August monthly swing high. Sustained strength beyond will be seen as a fresh trigger for bullish traders and pave the way for an extension of the ongoing recovery move.
This temporary rally can lift the XAG/USD towards its next bullish figure, just ahead of the $19.00 round figure. The latter coincides with the 100-period SMA on the 4-hour chart, which, if cleared, will reaffirm that spot prices have tunneled out in the near term.
The momentum could extend towards the 200-period SMA on the 4-hour chart, currently pegged near the $19.40-$19.45 region. Some follow-through buying beyond the $19.65 horizontal support breakpoint, turned resistance, should allow bulls to reclaim the $20.00 psychological mark.
A significant pullback now might gain some support near the $18.25-$18.20 region ahead of the $18.00 round figure. Failure to defend the said support levels will show that the corrective rebound in price has diminished and shifted the bias back in favor of bearish traders.