Silver Price Analysis: XAG/USD drops to multi-week lows, bears eye $25


  • Silver extends its slide after closing in the red on Thursday.
  • Next target on the downside could be seen at $25.
  • Near-term bearish outlook to remain intact unless XAG/USD reclaims $27.

Following Tuesday's rebound, the XAG/USD pair lost its traction on Wednesday and fell more than 2%. With the greenback preserving its strength, silver extended its slide and touched its lowest level since late January at $25.62. As of writing, XAG/USD was down 0.75% on the day at $25.90.

Silver technical outlook

On the four-hour chart, XAG/USD continues to trade below the one-week-old descending trend line. On the same chart, the Relative Strength Index (RSI) indicator is staying within a touching distance of 30, suggesting that the pair could make a technical correction before the next leg down.

However, unless the pair manages to break above the trend line, which is currently located around $26.40, and recapture the $26.80-$27.20 area (200 and 100 SMAs), sellers are likely to try to remain in control of prices.

On the downside, the initial support is located at $25.60 (multi-week lows) and XAG/USD could continue to push lower toward $25 (psychological level, static support) if a four-hour candle closes below that level. 

Additional levels to watch for

XAG/USD

Overview
Today last price 25.81
Today Daily Change -0.34
Today Daily Change % -1.30
Today daily open 26.15
 
Trends
Daily SMA20 27.13
Daily SMA50 26.51
Daily SMA100 25.41
Daily SMA200 24.08
 
Levels
Previous Daily High 26.83
Previous Daily Low 25.84
Previous Weekly High 28.33
Previous Weekly Low 26.14
Previous Monthly High 30.07
Previous Monthly Low 25.9
Daily Fibonacci 38.2% 26.22
Daily Fibonacci 61.8% 26.45
Daily Pivot Point S1 25.72
Daily Pivot Point S2 25.28
Daily Pivot Point S3 24.72
Daily Pivot Point R1 26.71
Daily Pivot Point R2 27.26
Daily Pivot Point R3 27.7

 

 

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