Silver Price Analysis: XAG/USD could slide back to retest $18.00 pivotal support

Silver extends the overnight retracement slide from the $19.00 neighbourhood.
The technical setup favours bears and supports prospects for additional losses.
A sustained move beyond the $19.00 mark is needed to negate the negative bias.

Haresh Menghani FXStreet

Silver comes under fresh selling pressure on Wednesday and extends the previous day's modest pullback from the vicinity of the $19.00 mark. The white metal remains on the defensive through the first half of the European session and is currently flirting with the daily low, around mid-$18.00s.

From a technical perspective, the recent bounce from a nearly three-week low touched last Friday faces rejection near the 100-hour EMA. Meanwhile, oscillators on the daily chart are holding in the bearish territory and have again started gaining negative traction on the 1-hour chart. This, in turn, supports prospects for an extension of the intraday depreciating move.

Hence, a subsequent slide back towards challenging a pivotal support, around the $18.00 mark, remains a distinct possibility. Some follow-through selling will be seen as a fresh trigger for bearish traders and drag the XAG/USD back towards the YTD low, around the $17.55 area. Spot prices could eventually drop to the next relevant support near the $17.00 round figure.

On the flip side, the 100-hour SMA, around the $18.90-$19.00 area, might act as an immediate hurdle. A sustained move beyond might trigger a short-covering rally and lift XAG/USD towards the $19.70-$19.80 supply zone en route to the $20.00 psychological mark. The latter should act as a pivotal point for bulls, which if cleared should pave the way for further gains.

The subsequent move up has the potential to lift the XAG/USD further beyond the $20.50 intermediate resistance, towards reclaiming the $21.00, which coincides with the 200-day EMA.

Silver 1-hour chart

Key levels to watch

XAG/USD

Overview
Today last price	18.54
Today Daily Change	-0.19
Today Daily Change %	-1.01
Today daily open	18.73

Trends
Daily SMA20	19.36
Daily SMA50	19.25
Daily SMA100	19.79
Daily SMA200	21.77

Levels
Previous Daily High	18.93
Previous Daily Low	18.55
Previous Weekly High	20.19
Previous Weekly Low	18.09
Previous Monthly High	20.02
Previous Monthly Low	17.56
Daily Fibonacci 38.2%	18.78
Daily Fibonacci 61.8%	18.69
Daily Pivot Point S1	18.54
Daily Pivot Point S2	18.36
Daily Pivot Point S3	18.16
Daily Pivot Point R1	18.92
Daily Pivot Point R2	19.12
Daily Pivot Point R3	19.3

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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