Silver Price Analysis: XAG/USD defends 100-hour SMA support, at lest for now

Silver came under some fresh selling pressure on the first day of a new trading week.
The near-term technical set-up still seems tilted firmly in favour of bearish traders.
A sustained move beyond the $24.00 mark is needed to negate the negative outlook.

Haresh Menghani FXStreet

Silver witnessed some selling on the first day of a new week and eroded a part of Friday's strong move up to multi-day tops, around the $23.80-85 region. Despite the pullback, the commodity, so far, has managed to hold its neck above 100-hour SMA support, around the $23.45 region. This should now act as a key pivotal point and allow traders to grab some intraday opportunities.

Meanwhile, technical indicators on 4-hour/daily charts maintained their bearish bias and have again started drifting into the negative territory on the 1-hour chart. This, in turn, supports prospects for further intraday losses. Hence, a subsequent slide towards the $23.25 region, en-route the $23.00 round-figure marks, seems a distinct possibility. The latter coincides with support marked by the 23.6% Fibonacci level of the $25.92-$22.17 sharp fall.

A convincing break below will be seen as a fresh trigger for bearish traders and set the stage for an extension of the depreciating move. The XAG/USD might then aim to challenge YTD lows, around the 22.20 region touched last Monday.

On the flip side, the $23.80-85 region now seems to have emerged as an immediate hurdle. This is followed by the 50% Fibo. level, around the $24.00 mark, which if cleared decisively will set the stage for additional gains. The XAG/USD might then surpass an intermediate resistance near the $24.35-40 horizontal zone and test the next relevant hurdle marked by the 61.8% Fibo. level, around the $24.55-60 region.

Silver 1-hour chart

Technical levels to watch

XAG/USD

Overview
Today last price	23.54
Today Daily Change	-0.22
Today Daily Change %	-0.93
Today daily open	23.76

Trends
Daily SMA20	24.75
Daily SMA50	25.79
Daily SMA100	26.16
Daily SMA200	25.9

Levels
Previous Daily High	23.83
Previous Daily Low	23.17
Previous Weekly High	24.37
Previous Weekly Low	22.17
Previous Monthly High	26.78
Previous Monthly Low	24.5
Daily Fibonacci 38.2%	23.58
Daily Fibonacci 61.8%	23.42
Daily Pivot Point S1	23.34
Daily Pivot Point S2	22.92
Daily Pivot Point S3	22.68
Daily Pivot Point R1	24
Daily Pivot Point R2	24.25
Daily Pivot Point R3	24.66

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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