Silver Price Analysis: $25.70-65 confluence is the next relevant target for XAG/USD bears


  • Silver added to the post-FOMC losses and dropped to fresh six-week lows on Thursday.
  • The technical set-up favours bearish traders and supports prospects for further losses.
  • Any attempted recovery move could now be seen as an opportunity for bearish traders.

Silver failed to capitalize on its intraday positive move, instead came under some renewed selling pressure and extended its recent pullback from the $28.25-30 supply zone.

This marked the fifth consecutive day of a negative move and dragged the XAG/USD to its lowest level since May 6, around the $26.25-20 region during the mid-European session. The mentioned area coincides with the 50% Fibonacci level of the $23.78-$28.75 strong move up and should now act as a key pivotal point for short-term traders.

Meanwhile, the overnight post-FOMC fall confirmed a near-term bearish breakdown through a symmetrical triangle. A subsequent slide below 100-day SMA and bearish technical indicators on the daily chart adds credence to the negative outlook. This, in turn, supports prospects for an extension of the ongoing downward trajectory.

Hence, some follow-through slide below the $26.00 mark, towards testing the $25.70-65 confluence support, remains a distinct possibility. The latter comprises the very important 200-day SMA and the 61.8% Fibo. level. A convincing break below might now turn the XAG/USD vulnerable to challenge the key $25.00 psychological mark.

On the flip side, the $26.65 region (100-DMA), seems to act as immediate resistance. Any subsequent move up could now be seen as a selling opportunity near the $26.85 zone (38.2% Fibo. level). This is followed by the $27.00 mark and the triangle support breakpoint, around the $27.15 region, which should cap gains for the XAG/USD.

XAG/USD daily chart

fxsoriginal

Technical levels to watch

XAG/USD

Overview
Today last price 26.39
Today Daily Change -0.61
Today Daily Change % -2.26
Today daily open 27
 
Trends
Daily SMA20 27.78
Daily SMA50 27
Daily SMA100 26.63
Daily SMA200 25.74
 
Levels
Previous Daily High 27.83
Previous Daily Low 26.61
Previous Weekly High 28.29
Previous Weekly Low 27.47
Previous Monthly High 28.75
Previous Monthly Low 25.81
Daily Fibonacci 38.2% 27.08
Daily Fibonacci 61.8% 27.36
Daily Pivot Point S1 26.46
Daily Pivot Point S2 25.93
Daily Pivot Point S3 25.24
Daily Pivot Point R1 27.69
Daily Pivot Point R2 28.37
Daily Pivot Point R3 28.91

 

 

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