Silver Price Analysis: XAG/USD bears await a sustained break below $25.00 mark


  • Silver remained depressed for the second consecutive session on Monday.
  • The set-up seems to have already shifted back in favour of bearish traders.

Silver edged lower for the second consecutive session on Monday, albeit lacked any strong follow-through selling. The white metal, so far, has managed to hold its neck above the key $25.00 psychological mark.

Looking at the technical picture, the recent bounce from YTD lows touched on March 31 stalled near a resistance marked by the 61.8% Fibonacci level of the $26.64-$23.78 decline, around the $25.60 region. A subsequent breakthrough short-term ascending channel support, which coincided with the 50% Fibo. level has shifted the bias back in favour of bearish traders.

The outlook is reinforced by the fact that technical indicators on the daily chart maintained their bearish bias and have again started drifting into the negative territory on hourly charts. This, in turn, supports prospects for the resumption of the commodity's recent downward trajectory from the $30.00 mark witnessed over the past two months or so.

Hence, some follow-through weakness towards the 38.2% Fibo. level, around the $24.85-80 region, now looks a distinct possibility. The next relevant bearish target is pegged near the $24.45 region, or 23.6% Fibo. level, which if broken will turn the XAG/USD vulnerable to accelerate the fall towards the $24.00 mark en-route YTD lows, around the $23.80-75 region.

On the flip side, the $25.60 region might continue to act as immediate strong resistance and cap the upside for the XAG/USD. That said, a sustained move beyond might prompt a fresh short-covering move and assist the metal to aim back to reclaim the $26.00 mark. Any further move up would allow bulls to challenge the $26.40-50 heavy supply zone.

XAG/USD 1-hour chart

fxsoriginal

Technical levels to watch

XAG/USD

Overview
Today last price 25.13
Today Daily Change -0.13
Today Daily Change % -0.51
Today daily open 25.26
 
Trends
Daily SMA20 25.33
Daily SMA50 26.24
Daily SMA100 25.69
Daily SMA200 25.08
 
Levels
Previous Daily High 25.5
Previous Daily Low 24.99
Previous Weekly High 25.62
Previous Weekly Low 24.61
Previous Monthly High 27.08
Previous Monthly Low 23.78
Daily Fibonacci 38.2% 25.18
Daily Fibonacci 61.8% 25.31
Daily Pivot Point S1 25
Daily Pivot Point S2 24.73
Daily Pivot Point S3 24.48
Daily Pivot Point R1 25.51
Daily Pivot Point R2 25.76
Daily Pivot Point R3 26.03

 

 

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.

Feed news

Are you new to trading or have been trading for a while and you feel stuck?

Try with us!
Become Premium!
   

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: Corrective pullback battles weekly resistance near 1.2000

EUR/USD fades bounces off three-week-old horizontal support area. Sustained trading below 100-SMA, downbeat MACD keep sellers hopeful. 200-SMA adds to the downside filters, bumpy road to the north.

EUR/USD News

GBP/USD: Risk reversal jumps to two-month high ahead of BOE Super Thursday

One-month risk reversals on the British pound (GBP), a gauge of calls to puts, jumps to the highest since March 02 by the of Wednesday’s trading session, indicating investors are adding bullish bets to position for cable strength ahead of the key Bank of England (BOE) meeting.

GBP/USD News

Former US treasurer joins Ripple, laying the foundation for XRP price to double

Ripple price has transformed into a new, high probability opportunity. XRP price opportunity began as an inverse head-and-shoulders pattern, but it has evolved into a bullish cup-with-handle base on the intra-day charts.

More Cryptocurrencies News

GBP/USD: Risk reversal jumps to two-month high ahead of BOE Super Thursday

One-month risk reversals on the British pound (GBP), a gauge of calls to puts, jumps to the highest since March 02 by the of Wednesday’s trading session, indicating investors are adding bullish bets to position for cable strength ahead of the key Bank of England (BOE) meeting.

GBP/USD News

Are investors about to be burned by recency bias?

Are investors about to be burned by the recency bias? That’s the argument of Chris Cole of Artemis Capital in a very interesting Odd Lots podcast with Tracy Alloway.

Read more

Forex MAJORS

Cryptocurrencies

Signatures