Silver Price Analysis: XAG/USD bears need to wait for break below 38.2% Fibo. near $24.30

Silver meets with a fresh supply on Tuesday and drops closer to last week’s swing low.
The setup suggests that the path of least resistance for the XAG/USD is to the downside.
A sustained break below the 38.2% Fibo. will reinforce the near-term negative outlook.

Haresh Menghani FXStreet

Silver (XAG/USD) comes under some selling pressure on Tuesday and remains depressed near mid-$24.00s through the first half of the European session. Meanwhile, the technical setup seems tilted in favour of bearish traders and supports prospects for an extension of last week's sharp retracement slide from the $25.75-$25.80 region, or its highest level since early December.

The XAG/USD now seems to have found acceptance below the $24.85-$24.80 horizontal support, which coincides with the 23.6% Fibonacci retracement level of the February-March rally. The subsequent slide, however, stalled near the $24.40 area, just ahead of the 38.2% Fibo. level, which should now act as a key pivotal point. Meanwhile, mixed oscillators on the daily chart make it prudent to wait for some follow-through selling below the said support before positioning for any further losses.

The XAG/USD might then accelerate the corrective decline further towards the $24.00 round figure before dropping to 50% Fibo. level support, around the $23.85 region. This is followed by the $23.35 confluence, comprising the 61.8% Fibo. and the very important 200-day Simple Moving Average (SMA). A convincing break below the latter will be seen as a fresh trigger for bearish traders and drag the white metal below the $23.00 mark, towards the next relevant support near the $22.45 region.

On the flip side, any attempted recovery is likely to attract fresh sellers and remain capped near the $25.00 psychological mark. That said, a sustained strength beyond the said handle might trigger a bout of a short-covering rally and lift the XAG/USD to the $25.50 region en route to the YTD peak, around the $25.75-$25.80 region. This is followed by the December 2023 swing high, just ahead of the $26.00 round figure, which if cleared decisively will set the stage for a further near-term appreciating move.

(This story was corrected on March 26 at 10:45 GMT to say, in the second bullet point, that the Silver pair is XAG/USD, not XAU/USD.)

Silver daily chart

XAG/USD

Overview
Today last price	24.63
Today Daily Change	-0.04
Today Daily Change %	-0.16
Today daily open	24.67

Trends
Daily SMA20	24.22
Daily SMA50	23.32
Daily SMA100	23.49
Daily SMA200	23.34

Levels
Previous Daily High	24.89
Previous Daily Low	24.56
Previous Weekly High	25.77
Previous Weekly Low	24.4
Previous Monthly High	23.5
Previous Monthly Low	21.93
Daily Fibonacci 38.2%	24.76
Daily Fibonacci 61.8%	24.69
Daily Pivot Point S1	24.53
Daily Pivot Point S2	24.38
Daily Pivot Point S3	24.2
Daily Pivot Point R1	24.85
Daily Pivot Point R2	25.04
Daily Pivot Point R3	25.18

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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