Silver Price Analysis: Near-term bias remains tilted in favour of XAG/USD bears


  • 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

fxsoriginal

Technical levels to watch

XAG/USD

Overview
Today last price 23.69
Today Daily Change -0.05
Today Daily Change % -0.21
Today daily open 23.74
 
Trends
Daily SMA20 23.88
Daily SMA50 24.62
Daily SMA100 25.85
Daily SMA200 25.89
 
Levels
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

 

 

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