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Silver Price Analysis: XAG/USD dwindles after hitting a 9-month high, back below $23.50

After hitting a new nine-month high of $24.62, Silver price nosedives, failing to break the $23.00-$24.50 range for the fourth consecutive day in the week, and exchanges hands at around $23.40s at the time of writing.

Wall Street continues to record gains bolstered by a big tech company projecting a positive outlook for 2023. The Federal Reserve rate hike of 25 bps weighed on the greenback during Wednesday and Thursday’s overnight session. However, the greenback is staging a comeback, albeit US Treasury yields fall. That has been a tailwind for the white metal, extending its losses toward the bottom of the range.

Silver Price Analysis: XAG/USD Technical Outlook

The XAG/USD is still range-bound, dropped below the 20-day Exponential Moving Average (EMA) at $23.69, which would act as a resistance level in the event of Silver attempting to rally back to $24.00. XAG/USD’s failure to decisively break the previous YTD high at $24.54 could pave the way for a re-test of $23.00, a psychological level. Once cleared, that will put in play the January 23 swing low of $22.76, followed by the December 16 daily low at $22.56.

As an alternate scenario, Silver’s reclaiming $24.00 would open the door for further upside and continuation after one month of consolidation, within the $23.00-$24.50 range. After XAG/USD climbs above the top of the range, the next ceiling would be the YTD high at $24.62, followed by the $25.00 figure.

Silver Key Technical Levels

XAG/USD

Overview
Today last price23.49
Today Daily Change-0.51
Today Daily Change %-2.13
Today daily open24
 
Trends
Daily SMA2023.75
Daily SMA5023.37
Daily SMA10021.62
Daily SMA20021.02
 
Levels
Previous Daily High24.04
Previous Daily Low23.37
Previous Weekly High24.3
Previous Weekly Low22.76
Previous Monthly High24.55
Previous Monthly Low22.76
Daily Fibonacci 38.2%23.78
Daily Fibonacci 61.8%23.62
Daily Pivot Point S123.57
Daily Pivot Point S223.13
Daily Pivot Point S322.89
Daily Pivot Point R124.24
Daily Pivot Point R224.48
Daily Pivot Point R324.91

Author

Christian Borjon Valencia

Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.

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