- Silver attracted some buying near the $23.45 region in reaction to the softer US CPI report.
- The lack of follow-through buying warrants caution before positioning for further gains.
- The set-up favours bearish traders and supports prospects for an eventual breakdown.
Silver refreshed daily tops in reaction to softer-than-expected US CPI report, though lacked any follow-through buying. The white metal was last seen trading around the $23.70-65 region, nearly unchanged for the day.
From a technical perspective, the XAG/USD attracted some buying just ahead of August 27 swing lows support near the $23.35 region. Bulls, however, struggled to capitalize on the move and faced rejection near a previous strong support breakpoint, around the $23.80-75 region. The mentioned levels should now act as a key pivotal point for short-term traders and help determine the next leg of a directional move for the commodity.
Meanwhile, technical indicators on 4-hour/daily charts maintained their bearish bias and have also recovered from the oversold territory on the 1-hour chart. The set-up seems tilted firmly in favour of bearish traders and supports prospects for an eventual break to the downside. Hence, a subsequent fall below the $23.00 mark, towards challenging YTD lows around the $22.20-15 region touched on August 8, remains a distinct possibility.
On the flip side, any positive move beyond the $23.75-80 support-turned-resistance might confront stiff resistance near the $24.00 mark. That said, a sustained move beyond might trigger a short-covering move and push the XAG/USD towards the $24.40 intermediate resistance. Bulls might then aim to test monthly tops, around the $24.85 area.
Silver 4-hour chart
Technical levels to watch
|Today last price||23.69|
|Today Daily Change||-0.05|
|Today Daily Change %||-0.21|
|Today daily open||23.74|
|Previous Daily High||23.86|
|Previous Daily Low||23.38|
|Previous Weekly High||24.82|
|Previous Weekly Low||23.73|
|Previous Monthly High||26|
|Previous Monthly Low||22.17|
|Daily Fibonacci 38.2%||23.56|
|Daily Fibonacci 61.8%||23.67|
|Daily Pivot Point S1||23.46|
|Daily Pivot Point S2||23.18|
|Daily Pivot Point S3||22.98|
|Daily Pivot Point R1||23.94|
|Daily Pivot Point R2||24.14|
|Daily Pivot Point R3||24.42|
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.