Silver Price Analysis: XAG/USD could retest sub-$22.00 levels, or two-month trough

Silver struggles to capitalize on the previous day’s modest bounce from a two-week low.
The technical setup favours bearish traders and supports prospects for additional losses.
A sustained strength beyond the 200-day SMA is needed to negate the bearish outlook.

Haresh Menghani FXStreet

Silver (XAG/USD) attracts some sellers following an intraday uptick on Thursday and for now, seems to have stalled its modest recovery from the $22.30-$22.25 region, or a two-week low touched the previous day. The white metal trades just below the mid-$22.00s during the first half of the European session and seems vulnerable to sliding further.

The recent failure to find acceptance above the very important and significant 200-day Simple Moving Average (SMA) and the subsequent slide from a multi-week high, around mid-$23.00s touched on February 16, validates the negative outlook. Moreover, oscillators on the daily chart have just started drifting in the negative territory and support prospects for a further near-term depreciating move for the XAG/USD.

That said, it will still be prudent to wait for some follow-through selling below the overnight swing low, around the $22.30$22.25 area before placing fresh bearish bets. The XAG/USD might then accelerate the fall towards retesting sub-$22.00 levels, or a two-month low touched in January. The downward trajectory could extend further and drag the white metal to the next relevant support near the $21.40-$21.35 region.

On the flip side, the daily peak, around the mid-$22.00s, might continue to act as an immediate hurdle ahead of the $22.70-$22.75 region. This is followed by the $23.00 round-figure mark, which if cleared decisively might trigger a short-covering rally, though the momentum runs the risk of fizzling out near the 200-day SMA, currently around the $23.30 zone. This should cap the upside near the mid-$23.00, or the monthly peak.

Silver daily chart

XAG/USD

Overview
Today last price	22.46
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	22.46

Trends
Daily SMA20	22.68
Daily SMA50	23
Daily SMA100	23.22
Daily SMA200	23.28

Levels
Previous Daily High	22.52
Previous Daily Low	22.28
Previous Weekly High	23.46
Previous Weekly Low	22.56
Previous Monthly High	24.09
Previous Monthly Low	21.93
Daily Fibonacci 38.2%	22.37
Daily Fibonacci 61.8%	22.43
Daily Pivot Point S1	22.32
Daily Pivot Point S2	22.18
Daily Pivot Point S3	22.08
Daily Pivot Point R1	22.56
Daily Pivot Point R2	22.66
Daily Pivot Point R3	22.8

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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