Silver Price Analysis: XAG/USD bears flirt with $24.30-25 confluence support


  • Silver has been oscillating in a range near the $24.30-25 confluence support.
  • Mixed oscillators warrant caution before placing aggressive directional bets.

Silver extended its sideways consolidative price action through the mid-European session and remained confined in a narrow trading band around the $24.30-25 region.

The mentioned area marks confluence support comprising of 200-period SMA on the 4-hour chart and a short-term ascending trend-line extending from August 20 swing lows. Given the previous day's pullback from near one-month tops, a sustained break below will be seen as a fresh trigger for bearish traders.

Meanwhile, technical indicators on hourly charts have been drifting into the negative territory but are yet to confirm a bearish bias on the daily chart. This, in turn, makes it prudent to wait for a convincing breakthrough the said confluence support before positioning for any further downfall.

The next relevant support is pegged near the $24.00 round-figure ahead of the $24.80-75 horizontal zone. Some follow-through selling might turn the XAG/USD vulnerable and accelerate the slide towards intermediate support near the $23.50-45 region en-route the $23.00 round-figure mark.

On the flip side, immediate resistance is pegged near the $24.40-50 region ahead of the overnight swing highs, around the $24.80-85 region. This is closely followed by the key $25.00 psychological mark, which if cleared decisively should push the XAG/USD to the $25.65 zone. The momentum could further get extended and allow bulls to challenge August monthly swing highs, around the $26.00 mark.

Silver 4-hour chart

fxsoriginal

Technical levels to watch

XAG/USD

Overview
Today last price 24.22
Today Daily Change -0.10
Today Daily Change % -0.41
Today daily open 24.32
 
Trends
Daily SMA20 23.82
Daily SMA50 24.81
Daily SMA100 25.94
Daily SMA200 25.9
 
Levels
Previous Daily High 24.82
Previous Daily Low 24.17
Previous Weekly High 24.87
Previous Weekly Low 23.76
Previous Monthly High 26
Previous Monthly Low 22.17
Daily Fibonacci 38.2% 24.42
Daily Fibonacci 61.8% 24.57
Daily Pivot Point S1 24.05
Daily Pivot Point S2 23.78
Daily Pivot Point S3 23.39
Daily Pivot Point R1 24.71
Daily Pivot Point R2 25.09
Daily Pivot Point R3 25.36

 

 

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