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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

Author

Christian Borjon Valencia

FXStreet

Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.

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