Silver Price Analysis: XAG/USD finds some support near $23.00, remains vulnerable
- Silver witnessed aggressive selling on Thursday and finally broke down of its consolidative range.
- Slightly oversold RSI on hourly/daily charts helped limit the downside and defend the $23.00 mark.
- The set-up remains tilted in favour of bearish traders and supports prospects for further weakness.
Silver came under some renewed selling pressure on Thursday and finally broke down of its two-day-old consolidative trading range. The white metal accelerated the decline during the early North American session and dropped to three-day lows, though managed to find some support near the $23.00 mark.
Weakness below the $23.20 horizontal support was seen as a key trigger for bearish traders and the latest leg of a sudden fall over the past hour or so. That said, slightly oversold RSI on hourly/daily charts helped limit any further losses and assisted the XAG/USD to bounce off daily swing lows.
Nevertheless, the downfall might have already set the stage for an extension of the recent downfall witnessed over the past one week or so. The XAG/USD seems vulnerable to break below the $23.00 mark and accelerate the slide back to retest YTD lows, around the $22.75 region touched on Monday.
On the flip side, any meaningful recovery attempt might now be seen as a selling opportunity and runs the risk of fizzling out rather quickly near the $23.55-60 supply zone. A sustained move beyond might trigger a short-covering move and allow the XAG/USD to aim back to reclaim the $24.00 round figure.
Silver 1-hour chart
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Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
