Silver retreats from multi-week peak, slides below $36

Silver sticks to modest intraday losses through the early European session on Tuesday and for now, seems to have snapped a three-day winning streak to the $37.00 neighborhood, or its highest level since February 2012. XAGUSD currently trades below mid-$36.00s, down 0.80% for the day.

The daily Relative Strength Index (RSI) is flashing slightly overbought conditions and prompts the white metal bulls to take some profits off the table. However, the recent breakout through the previous multi-year peak and the subsequent move up favor suggests that any meaningful corrective pullback could be seen as a buying opportunity.

From current levels, the $36.00-35.90 area could offer immediate support, below which the XAGUSD could extend the slide to the next relevant support near $35.60 en route to levels below the $35.00 psychological mark. The latter should act as a key pivotal point and a convincing break below would negate the constructive outlook. This, in turn, would shift the near-term bias in favor of bearish traders and pave the way for some meaningful downside.

On the flip side, bulls might now await a move beyond the $37.00 figure before placing fresh bets and positioning for an extension of over a one-week-old uptrend. The XAGUSD might then retest the 2012 yearly swing high, around mid-$37.00s, before aiming to reclaim the $38.00 mark for the first time since September 2011.