Silver Price Analysis: XAG/USD flirts with daily low, holds above 38.2% Fibo. pivotal support

Silver meets with some supply and erases a part of Friday’s strong gains to a two-week high.
The technical setup supports prospects for the emergence of some dip-buying at lower levels.
Sustained weakness back below the $22.30 area could pave the way for further intraday losses.

Haresh Menghani FXStreet

Silver (XAG/USD) kicks off the new week on a weaker note and erodes a part of Friday's strong move up to the $22.80 region, or a two-week high. The white metal maintains its offered tone through the early part of the European session and is currently placed just above mid-$22.00s, down over 0.70% for the day.

From a technical perspective, Friday's sustained breakout through a multi-day-old trading range and a subsequent move beyond the 38.2% Fibonacci retracement level of the August-October downfall favours bullish traders. Moreover, oscillators on the daily chart have just started gaining positive traction and support prospects for the emergence of some dip-buying near the $22.30 area and remain limited.

Some follow-through selling, however, could turn the XAG/USD vulnerable to weaken further below the $22.00 mark, towards the 23.6% Fibo. level, around the $21.75 area. Failure to defend the said support levels has the potential to drag the white metal further towards the $21.3-$21.30 intermediate support en route to the $21.00 mark and the $20.70-$20.65 zone, or a seven-month low touched earlier this month.

On the flip side, bulls might now wait for a move beyond the $22.80 region, or the 50% Fibo. level, before placing fresh bets. The XAG/USD might then surpass the $23.00 round-figure mark and climb further towards testing the $23.35 confluence, comprising the very important 200-day Simple Moving Average (SMA) and the 61.8% Fibo. level. A sustained move beyond will set the stage for a further appreciating move.

The subsequent move up has the potential to lift the XAG/USD towards the next relevant hurdle near the $23.75-$23.80 region (September 22 high) en route to the $24.00 round figure and the $24.30-$24.35 resistance zone.

Silver daily chart

Technical levels to watch

XAG/USD

Overview
Today last price	22.54
Today Daily Change	-0.18
Today Daily Change %	-0.79
Today daily open	22.72

Trends
Daily SMA20	22.31
Daily SMA50	22.92
Daily SMA100	23.32
Daily SMA200	23.34

Levels
Previous Daily High	22.82
Previous Daily Low	21.81
Previous Weekly High	22.82
Previous Weekly Low	21.57
Previous Monthly High	24.82
Previous Monthly Low	22.12
Daily Fibonacci 38.2%	22.43
Daily Fibonacci 61.8%	22.19
Daily Pivot Point S1	22.08
Daily Pivot Point S2	21.44
Daily Pivot Point S3	21.07
Daily Pivot Point R1	23.09
Daily Pivot Point R2	23.46
Daily Pivot Point R3	24.1

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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