Silver Price Analysis: XAG/USD defends 100-hour SMA support, at lest for now
|- Silver came under some fresh selling pressure on the first day of a new trading week.
- The near-term technical set-up still seems tilted firmly in favour of bearish traders.
- A sustained move beyond the $24.00 mark is needed to negate the negative outlook.
Silver witnessed some selling on the first day of a new week and eroded a part of Friday's strong move up to multi-day tops, around the $23.80-85 region. Despite the pullback, the commodity, so far, has managed to hold its neck above 100-hour SMA support, around the $23.45 region. This should now act as a key pivotal point and allow traders to grab some intraday opportunities.
Meanwhile, technical indicators on 4-hour/daily charts maintained their bearish bias and have again started drifting into the negative territory on the 1-hour chart. This, in turn, supports prospects for further intraday losses. Hence, a subsequent slide towards the $23.25 region, en-route the $23.00 round-figure marks, seems a distinct possibility. The latter coincides with support marked by the 23.6% Fibonacci level of the $25.92-$22.17 sharp fall.
A convincing break below will be seen as a fresh trigger for bearish traders and set the stage for an extension of the depreciating move. The XAG/USD might then aim to challenge YTD lows, around the 22.20 region touched last Monday.
On the flip side, the $23.80-85 region now seems to have emerged as an immediate hurdle. This is followed by the 50% Fibo. level, around the $24.00 mark, which if cleared decisively will set the stage for additional gains. The XAG/USD might then surpass an intermediate resistance near the $24.35-40 horizontal zone and test the next relevant hurdle marked by the 61.8% Fibo. level, around the $24.55-60 region.
Silver 1-hour chart
Technical levels to watch
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