Silver Price Analysis: XAG/USD bears take breather near 61.8% Fibo. level around mid-$20.00s
- Silver continues losing ground for the fourth straight day and refreshes the YTD low on Monday.
- Oversold oscillators on the daily chart help the XAG/USD to find support near the 61.8% Fibo.
- The setup still favours bearish traders and supports prospects for a further depreciating move.
Silver remains under some selling pressure for the fourth successive day and drops to a fresh YTD low during the first half of trading on Monday. The white metal currently trades just above the mid-$20.00s and seems vulnerable to prolonging the recent downfall witnessed since the beginning of this month.
Friday's convincing break and acceptance below a technically significant 200-day Simple Moving Average (SMA) adds credence to the negative outlook. That said, oscillators on the daily chart are flashing extremely oversold conditions, making it prudent to wait for some consolidation or a modest rebound before positioning for further losses.
Any attempted recovery, however, is more likely to meet with a fresh supply near the $21.00 mark. This, in turn, should cap the XAG/USD near the $21.30-$21.35 region, marking the 50% Fibonacci retracement level of the rally from October 2022. The latter should act as a pivotal point, which if cleared could prompt some near-term short-covering.
Bearish traders, meanwhile, take a breather near the 61.8% Fibo. level, below which the XAG/USD could accelerate the fall towards challenging the $20.00 psychological mark. The white metal could eventually drop to the $19.75-$19.70 intermediate support en route to the $19.15 horizontal zone and the $19.00 round-figure mark.
Silver daily chart
Key levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
