Silver Price Analysis: XAG/USD flirts with 100-period SMA on H4, 23.6% Fibo. holds the key

Silver drifts lower for the second straight day, though defends 100-period SMA on the 4-hour chart.
The mixed oscillators on hourly/daily charts warrant some caution before placing aggressive bets.
A sustained weakness below the $24.40-30 area is needed to support prospects for deeper losses.

Haresh Menghani FXStreet

Silver remains under some selling pressure for the second successive day on Monday and drops to a three-day low, around the $24.80-$24.75 region heading into the European session.

From a technical perspective, the XAG/USD, so far, has managed to defend the 100-period Simple Moving Average (SMA) on the 4-hour chart. This is closely followed by the 23.6% Fibonacci retracement level of the March-April rally, around the $24.65 zone and the $24.40-$24.30 strong horizontal resistance breakpoint, now turned support.

With oscillators on hourly charts holding deep in the negative territory, a convincing break below the latter will set the stage for an extension of the recent pullback from a yearly peak, around the $26.10 region touched on April 14. The XAG/USD might then weaken further below the $24.00 mark and test the 38.2% Fibo. level, around the $23.70 area.

On the flip side, any intraday positive move back above the $25.00 psychological mark now seems to confront some resistance near the $25.20 horizontal level ahead of the $25.50-$25.60 supply zone. A sustained strength beyond will negate the negative bias and allow the XAG/USD to make a fresh attempt to conquer the $26.00 round-figure mark.

Some follow-through buying will mark a fresh bullish breakout and set the stage for a further near-term appreciating move. The next relevant hurdle is pegged near the $26.25-$26.30 region, above which the XAG/USD could aim to reclaim the $27.00 round-figure mark.

Silver 4-hour chart

Key levels to watch

XAG/USD

Overview
Today last price	24.88
Today Daily Change	-0.22
Today Daily Change %	-0.88
Today daily open	25.1

Trends
Daily SMA20	24.62
Daily SMA50	22.75
Daily SMA100	23.1
Daily SMA200	21.41

Levels
Previous Daily High	25.39
Previous Daily Low	24.9
Previous Weekly High	25.6
Previous Weekly Low	24.64
Previous Monthly High	24.16
Previous Monthly Low	19.9
Daily Fibonacci 38.2%	25.09
Daily Fibonacci 61.8%	25.2
Daily Pivot Point S1	24.87
Daily Pivot Point S2	24.65
Daily Pivot Point S3	24.39
Daily Pivot Point R1	25.36
Daily Pivot Point R2	25.62
Daily Pivot Point R3	25.85

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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