Silver Price Analysis: XAG/USD bounces off over one-week low, bearish potential seems intact


  • Silver slides to over a one-week low on Wednesday, albeit finds some support at lower levels.
  • The technical setup still favours bearish traders and supports prospects for a further downfall.
  • The stage seems all set for a retest of an ascending trend-line support, near the $22.35 region.

Silver drifts lower for the third successive day on Wednesday and drops to a one-and-half-week low, around the $22.65 region during the early European session. The white metal, however, manages to recover a bit in the last hour and is currently trading around the $22.80-$22.75 area, still down around 0.30% for the day.

From a technical perspective, the overnight sustained break and close below the $23.00 round figure was seen as a fresh trigger for bearish traders. Furthermore, oscillators on the daily chart have again started gaining negative traction and support prospects for a further depreciating move for the XAG/USD. Hence, a subsequent slide back towards challenging an ascending trend line extending from the June monthly low, currently pegged around the $22.35 zone, looks like a distinct possibility.

A convincing break though the latter will confirm a fresh breakdown and expose the next relevant support is pegged near the $22.00 mark. Some follow-through selling will set the stage for additional losses. The XAG/USD might then accelerate the downward trajectory towards the $21.25 intermediate support before eventually dropping to the $21.00 round figure.

On the flip side, the $23.00 mark might now act as an immediate hurdle ahead of the $23.20-$23.25 zone and the very important 200-day Simple Moving Average (SMA), currently around the $23.45 region. This is followed by last week's swing high, around the $23.75 area. A sustained strength beyond the latter has the potential to lift the XAG/USD towards the $24.00 round figure en route to the $24.30-$24.35 resistance, above which bulls could aim to reclaim the $25.00 psychological mark.

Silver daily chart

fxsoriginal

Technical levels to watch

XAG/USD

Overview
Today last price 22.78
Today Daily Change -0.08
Today Daily Change % -0.35
Today daily open 22.86
 
Trends
Daily SMA20 23.36
Daily SMA50 23.59
Daily SMA100 23.57
Daily SMA200 23.47
 
Levels
Previous Daily High 23.14
Previous Daily Low 22.85
Previous Weekly High 23.78
Previous Weekly Low 22.81
Previous Monthly High 25.02
Previous Monthly Low 22.23
Daily Fibonacci 38.2% 22.96
Daily Fibonacci 61.8% 23.03
Daily Pivot Point S1 22.76
Daily Pivot Point S2 22.66
Daily Pivot Point S3 22.47
Daily Pivot Point R1 23.05
Daily Pivot Point R2 23.24
Daily Pivot Point R3 23.34

 

 

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