Silver Price Analysis: XAG/USD confined in a range near mid-$22.00s, below 38.2% Fibo.


  • Silver extended its range-bound price action and remained confined in a narrow band.
  • The technical setup warrants some caution before placing aggressive directional bets.

Silver lacked any firm directional bias and remained confined in a narrow trading band, around mid-$22.00s through the Asian session on Tuesday.

Looking at the broader picture, the XAG/USD – barring the post-NFP spike to over three-week tops – has been oscillating in a familiar range since the beginning of the last week. The range-bound price action constitutes the formation of a rectangle on short-term charts, pointing to indecision over the commodity's near-term trajectory.

Moreover, technical indicators on the daily chart – though have managed to recover from the bearish territory – are yet to gain any meaningful traction. Adding to this, oscillators on the 4-hour chart have been hovering in the neutral territory. This makes it prudent to wait for a sustained break in either direction before placing aggressive bets.

Meanwhile, the top boundary of the mentioned trading range coincides with the 38.2% Fibonacci level of the $24.87-$21.42 downfall and should act as a pivotal point for intraday traders. The next relevant hurdle is pegged near the $23.15-20 confluence region, comprising of 200-period SMA on the 4-hour chart and the 50% Fibo. touched last Friday.

Some follow-through buying will be seen as a fresh trigger for bullish traders and set the stage for a further near-term appreciating move. The XAG/USD might then accelerate the momentum towards the 61.8% Fibo. level, around the $23.55-60 region, before eventually aiming back to reclaim the $24.00 mark for the first time since September 10.

On the flip side, the 23.6% Fibo. level, around the $22.25 area, coinciding with the lower end of the trading range, should protect the immediate downside. This is followed by the $22.00 round-figure mark, which if broken decisively might turn the XAG/USD vulnerable to slide back towards challenging monthly swing lows, around the $21.45-40 region.

Silver 4-hour chart

fxsoriginal

Technical levels to watch

XAG/USD

Overview
Today last price 22.58
Today Daily Change 0.00
Today Daily Change % 0.00
Today daily open 22.58
 
Trends
Daily SMA20 22.63
Daily SMA50 23.43
Daily SMA100 24.94
Daily SMA200 25.62
 
Levels
Previous Daily High 22.82
Previous Daily Low 22.5
Previous Weekly High 23.19
Previous Weekly Low 22.21
Previous Monthly High 24.87
Previous Monthly Low 21.42
Daily Fibonacci 38.2% 22.62
Daily Fibonacci 61.8% 22.7
Daily Pivot Point S1 22.44
Daily Pivot Point S2 22.31
Daily Pivot Point S3 22.12
Daily Pivot Point R1 22.77
Daily Pivot Point R2 22.96
Daily Pivot Point R3 23.1

 

 

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