Silver Price Analysis: XAG/USD hangs near one-week low, just above mid-$24.00s
|- Silver drifts lower for the second straight day and touches a one-and-half-week low.
- The mixed technical setup warrants caution before placing aggressive bearish bets.
- A convincing break below the 38.2% Fibo. level will set the stage for deeper losses.
Silver (XAG/USD) extends the previous day's sharp retracement slide from the $25.75-$25.80 region, or its highest level since early December and remains under some selling pressure for the second straight day on Friday. The white metal maintains its offered tone through the early part of the European session and is currently placed around mid-$24.00s, just above a one-and-half-week low touched earlier today.
From a technical perspective, the overnight breakdown through the $24.85-$24.80 horizontal support, coinciding with the 23.6% Fibonacci retracement level of the February-March rally was seen as a fresh trigger for bearish traders. The subsequent slide, however, stalls ahead of the 38.2% Fibo. level, which should now act as a key pivotal point. Meanwhile, oscillators on the daily chart – though have been losing traction – are still holding in the positive territory.
Hence, it will be prudent to wait for a sustained break below the said support near the $24.30 region before positioning for any further depreciating move for the XAG/USD. The corrective decline could then drag the white metal below the $24.00 round-figure mark, towards testing the 50% Fibo. level support near the $23.85 zone en route to the $23.40 confluence, comprising the 61.8% Fibo. and the very important 200-day Simple Moving Average (SMA).
On the flip side, the $24.80 horizontal support breakpoint could act as an immediate hurdle ahead of the $25.00 psychological mark. A sustained strength beyond the latter might trigger a bout of a short-covering rally towards the $25.50 region en route to the YTD peak, around the $25.75-$25.80 region. This is followed by the December 2023 swing high, just ahead of the $26.00 round figure, which if cleared decisively will set the stage for additional gains.
Silver daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.