Silver Price Analysis: XAG/USD clings to gains near mid-$18.00s, not out of the woods yet


Share:
  • Silver edges higher on Tuesday and recovers a part of the previous day’s decline.
  • The set-up still favours bearish traders and supports prospects for further losses.
  • Sustained strength beyond the $19.50 is needed to negate the bearish outlook.

Silver gains some positive traction on Tuesday and for now, seems to have snapped a two-day losing streak. The white metal held on to the modest intraday gains through the early European session and was last seen hovering near the daily high, around mid-$18.00s.

Looking at the broader picture, the XAG/USD has been oscillating in a familiar range over the past one-and-a-half week or so. Given the recent fall from mid-$22.00s or the June monthly high, the rangebound price moves could be categorized as a bearish consolidation phase.

Adding to this, repeated failures near the $19.00 round figure suggest that the near-term selling bias might still be far from being over. Furthermore, oscillators on the daily chart are holding deep in the bearish territory and add credence to the negative outlook.

Hence, any subsequent move up might still be seen as a selling opportunity near the $19.00 mark. Some follow-through buying has the potential to lift the XAG/USD further, though the momentum is likely to remain capped near the $19.40-$19.50 heavy supply zone.

On the flip side, the YTD low, around the $18.20-$18.15 region, is likely to protect the immediate downside ahead of the $18.00 mark. A convincing break below would be seen as a fresh trigger for bearish traders and set the stage for a further depreciating move.

The XAG/USD could then accelerate the downfall towards the $17.45-$17.40 intermediate support en-route to the $17.00 mark. The bearish trend could get extended and spot prices could eventually drop to test the next relevant support near the $16.70-$16.60 region.

Silver 4-hour chart

fxsoriginal

Key levels to watch

XAG/USD

Overview
Today last price 18.56
Today Daily Change 0.12
Today Daily Change % 0.65
Today daily open 18.44
 
Trends
Daily SMA20 19.25
Daily SMA50 20.74
Daily SMA100 22.49
Daily SMA200 22.99
 
Levels
Previous Daily High 18.79
Previous Daily Low 18.32
Previous Weekly High 19.1
Previous Weekly Low 18.25
Previous Monthly High 22.52
Previous Monthly Low 20.22
Daily Fibonacci 38.2% 18.5
Daily Fibonacci 61.8% 18.61
Daily Pivot Point S1 18.24
Daily Pivot Point S2 18.04
Daily Pivot Point S3 17.77
Daily Pivot Point R1 18.71
Daily Pivot Point R2 18.99
Daily Pivot Point R3 19.18

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

AUD/USD oscillates at around 0.6680s after FOMC’s decision, ahead of US jobless claims

AUD/USD oscillates at around 0.6680s after FOMC’s decision, ahead of US jobless claims

The AUD/USD finished Wednesday’s session in the green, gaining 0.26%, though well below the day’s highs at 0.6758. As the Asian Pacific session begins, the AUD/USD trades at 0.6683, slightly below its opening price by 0.01%.

AUD/USD News

EUR/USD steadies near seven-week high around 1.0850 after post Fed whipsaw

EUR/USD steadies near seven-week high around 1.0850 after post Fed whipsaw

EUR/USD bulls take a breather close to a two-month high, following a five-day uptrend, after Federal Reserve’s (Fed) failure to please US Dollar bulls despite announcing a 0.25% rate hike. The Euro pair seesaws around 1.0860, after a brief run-up to 1.0912, as the latest greenback licked its wounds during the last hour.

EUR/USD News

Gold soars to $1,978 after Fed raises rates as expected Premium

Gold soars to $1,978 after Fed raises rates as expected

Spot gold jumped to $1,978 during Fed Chair Powell’s press conference and then pulled back. A decline in US yields and broad-based Dollar weakness is offering support to the yellow metal, which is up more than 1% on the day.

Gold News

TRON price crashes 12% as SEC charged founder Justin Sun for violating securities laws

TRON price crashes 12% as SEC charged founder Justin Sun for violating securities laws

TRON price plummeted on March 22 after the cryptocurrency became the new target of the ongoing regulatory crackdown in the United States. The Security and Exchange Commission (SEC) is now looking into Tron founder Justin Sun’s company and related entities of the altcoin’s ecosystem.

Read more

Fed review: A cautious 25bp hike

Fed review: A cautious 25bp hike

The Fed's decision to hike rates by 25bp was widely anticipated by both the markets and economists ahead of the meeting. In line with our expectations, Fed made no changes to its QT, and the median 'dot' continued to signal Fed Funds Rate at 5.00-5.25% through 2023.

Read more

Forex MAJORS

Cryptocurrencies

Signatures