Silver Price Analysis: Acceptance below $23.00/61.8% Fibo. favours XAG/USD bears


  • Silver was seen consolidating recent losses to the lowest level since October 13.
  • The set-up favours bearish trades and supports prospects for additional losses.
  • Any recovery attempt could be seen as a selling opportunity and remain capped.

Silver lacked firm directional bias on Tuesday and seesawed between tepid gains/minor losses heading into the North American session. The white metal was last seen trading around the $22.85-80 region, just above the lowest level since October 13 touched in the previous day.

Looking at the technical picture, the XAG/USD now seems to have found acceptance below the $23.00 round-figure and the 61.8% Fibonacci level of the $21.42-$25.41 strong move up. This comes on the back of the recent break through the 100-day SMA and an ascending channel confluence support, which, in turn, favours bearish traders.

The negative outlook is reinforced by the fact that technical indicators on the daily chart are holding deep in the negative territory and are still far from being in the oversold zone. Some follow-through selling below the $22.70-65 region will reaffirm the bearish bias and pave the way for a further near-term depreciating move.

The XAG/USD might then accelerate the slide towards testing the next relevant support near the $22.30-25 region before eventually dropping to the $22.00 round-figure mark. The downward trajectory could further get extended towards the YTD low, around the $21.45-40 region set on September 29.

On the flip side, any attempted recovery now seems to confront stiff resistance near the $23.00-10 region. A further move up would now be seen as a selling opportunity and runs the risk of fizzling out quickly near the $23.40-45 region. The latter coincides with the 50% Fibo. level, which should cap the upside for the XAG/USD, at least for now.

Silver daily chart

fxsoriginal

Technical levels to watch

XAG/USD

Overview
Today last price 22.84
Today Daily Change -0.02
Today Daily Change % -0.09
Today daily open 22.86
 
Trends
Daily SMA20 24.22
Daily SMA50 23.57
Daily SMA100 23.94
Daily SMA200 25.2
 
Levels
Previous Daily High 23.44
Previous Daily Low 22.76
Previous Weekly High 24.89
Previous Weekly Low 22.92
Previous Monthly High 24.83
Previous Monthly Low 22
Daily Fibonacci 38.2% 23.02
Daily Fibonacci 61.8% 23.18
Daily Pivot Point S1 22.6
Daily Pivot Point S2 22.33
Daily Pivot Point S3 21.91
Daily Pivot Point R1 23.28
Daily Pivot Point R2 23.7
Daily Pivot Point R3 23.97

 

 

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