Silver Price Analysis: XAG/USD Bounced at the 20-DMA, reclaims $23.00 on risk aversion


  • Silver prices bounce and cling to gains, despite a buoyant US Dollar.
  • Near-term, XAG/USD might consolidate, as mixed signals between the RSI/RoC suggest caution is warranted.

Silver is recovering some ground after falling to weekly lows during the New York session of $22.56. However, a late buying impulse keeps XAG/USD trading in the green with gains of 0.41%. At the time of writing, the XAG/USD is trading at $23.21, above its opening price, and set to finish the week with losses of 1.23%.

Silver Price Analysis: Technical outlook

The XAG/USD daily chart depicts that the non-yielding metal remains upward biased after testing an upslope support trendline drawn from November lows. However, failure to crack the latter and its confluence with the 20-day EMA triggered Silver recovery. Also, the Relative Strength Index (RSI) and the Rate of Change (RoC) suggest that buyers are gathering momentum, and a daily close above the December 15 close of $23.05 could keep the trend intact.

In the near-term, the XAG/USD one-hour chart suggests that Silver’s dip below $22.60 opened the door for sellers to lean onto the 200-Exponential Moving Average (EMA) at $23.22 as immediate intraday resistance. Furthermore, mixed signals between the RSI – aiming upwards, and RoC – depicting buying pressure losing momentum might refrain traders from opening new positions.

Nevertheless, if XAG/USD breaks above the 200-EMA, the immediate ceiling level would be the daily pivot at $23.33, followed by the R1 pivot at $23.69. On the downside, the XAG/USD first support would be the 50-EMA at 23.16. A breach of the latter will expose December’s 15 daily low at $23.06, ahead of the $23.00 mark.

Silver Key Technical Levels

XAG/USD

Overview
Today last price 23.21
Today Daily Change 0.11
Today Daily Change % 0.48
Today daily open 23.1
 
Trends
Daily SMA20 22.26
Daily SMA50 20.84
Daily SMA100 20.14
Daily SMA200 21.22
 
Levels
Previous Daily High 23.94
Previous Daily Low 22.96
Previous Weekly High 23.69
Previous Weekly Low 22.03
Previous Monthly High 22.25
Previous Monthly Low 18.84
Daily Fibonacci 38.2% 23.34
Daily Fibonacci 61.8% 23.57
Daily Pivot Point S1 22.73
Daily Pivot Point S2 22.35
Daily Pivot Point S3 21.74
Daily Pivot Point R1 23.71
Daily Pivot Point R2 24.32
Daily Pivot Point R3 24.69

 

 

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