- Silver witnessed some selling on Tuesday and erased the previous day’s modest gains.
- A mixed technical setup warrants some caution before placing aggressive directional bets.
Silver dropped to fresh daily lows, around the $24.25 region during the first half of the European session, reversing the previous day's positive move.
Despite the pullback, the XAG/USD, so far, has managed to defend the 38.2% Fibonacci level of the $28.75-$21.42 downfall. The comes on the back of the recent sustained strength beyond a short-term descending trend-line resistance and an inverted head and shoulders bullish breakout. The set-up supports prospects for an extension of an upward trajectory witnessed over the past one month or so.
That said, last week's turnaround from an intermediate hurdle near the $24.80-85 region and the commodity's inability to find acceptance above the 100-day SMA warrants caution for bullish traders. The emergence of fresh selling on Tuesday further makes it prudent to wait for a strong follow-through buying before positioning for any further appreciating move amid absent fundamental catalysts.
From current levels, any further decline might continue to find decent support and attract some buying near the $24.00 mark, which now seems to act as a strong base for the XAG/USD. A convincing break below might accelerate the corrective slide towards mid-$23.00s. This is followed by the $23.20-15 confluence support, comprising of the descending trend-line breakpoint and the 23.6% Fibo. level.
On the flip side, the $24.50-60 region (100-day SMA) now seems to have emerged as an immediate strong hurdle. This is followed by the monthly swing highs, around the $24.80-85 region, above which the XAG/USD seems all set to reclaim the key $25.00 psychological mark. The latter coincides with the 50% Fibo. level, which if cleared decisively should pave the way for additional near-term gains.
Silver daily chart
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.