Silver Price Analysis: XAG/USD clings to modest gains near $25.00, not out of the woods yet


  • Silver staged a modest recovery from over three-month lows touched earlier this Wednesday.
  • The technical set-up still favours bearish traders and supports prospects for additional losses.

Silver staged a goodish intraday bounce from the $24.75 area, or the lowest level since April 13 touched earlier this Wednesday. The commodity held on to its recovery gains through the mid-European session, albeit retreated a bit from daily tops and was last seen trading just above the key $25.00 psychological mark.

Extremely oversold RSI on hourly charts turned out to be a key factor that prompted some short-covering move and assisted the XAG/USD to snap three consecutive days of the losing streak. That said, the near-term bias remains tilted firmly in favour of bearish traders and supports prospects for a further depreciating move.

The XAG/USD this week confirmed a bearish break through the $25.70-65 confluence support – comprising of the very important 200-day SMA and the 61.8% Fibonacci level of the $23.78-$28.75 move up. Some follow-through weakness below the previous monthly swing lows, around mid-$25.00s, and the $25.00 mark added credence to the negative outlook.

That said, the emergence of some dip-buying just ahead of the $24.70-65 intermediate support warrants some caution for aggressive bearish traders. Nevertheless, the XAG/USD still seems vulnerable to extend the downward trajectory towards the $24.00 round-figure mark before eventually dropping to challenge YTD lows, around the $23.80-75 region.

On the flip side, any meaningful recovery attempt could be seen as a selling opportunity and runs the risk of fizzling out rather quickly near the mentioned $25.70-65 confluence support breakpoint. This is followed by the $26.00 round-figure mark, above which the recovery could get extended towards the next relevant barrier near the $26.40-50 heavy supply zone.

Silver daily chart

fxsoriginal

Technical levels to watch

XAG/USD

Overview
Today last price 25.06
Today Daily Change 0.12
Today Daily Change % 0.48
Today daily open 24.94
 
Trends
Daily SMA20 25.99
Daily SMA50 26.89
Daily SMA100 26.36
Daily SMA200 25.86
 
Levels
Previous Daily High 25.28
Previous Daily Low 24.82
Previous Weekly High 26.46
Previous Weekly Low 25.6
Previous Monthly High 28.56
Previous Monthly Low 25.52
Daily Fibonacci 38.2% 24.99
Daily Fibonacci 61.8% 25.1
Daily Pivot Point S1 24.75
Daily Pivot Point S2 24.55
Daily Pivot Point S3 24.29
Daily Pivot Point R1 25.21
Daily Pivot Point R2 25.47
Daily Pivot Point R3 25.66

 

 

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