Silver Price Analysis: XAG/USD hangs near multi-week low, bears await a break below 61.8% Fibo.

Silver remains under some selling pressure for the fourth straight day on Friday.
The technical setup favours bears and supports prospects for a further downfall.
A sustained strength back above the $24.00 mark might negate the negative bias.

Haresh Menghani FXStreet

Silver comes under some renewed selling pressure during the early European session on Friday and drops to over a three-week low in the last hour. The white metal currently trades around the $23.40 area, down for the fourth straight day, and seems vulnerable to prolonging its downward trajectory witnessed over the past two weeks or so.

The negative outlook is reinforced by the fact that technical indicators on the daily chart have been drifting lower and are still far from being in the oversold territory. Bearish traders, however, might still wait for a sustained break and acceptance below the $23.35 area, or the 61.8% Fibonacci retracement level of the June-July rally, before positioning for any further losses.

The XAG/USD might then accelerate the slide towards challenging the very important 200-day Simple Moving Average (SMA), currently pegged around the $23.00 mark. The downward trajectory could get extended and make silver vulnerable to retest the multi-month low, around the $22.15-$22.10 area touched in June, before eventually breaking below the $22.00 mark.

On the flip side, the 50% Fibo. level, around the $23.70 area, now seems to act as an immediate hurdle. Any subsequent move up is likely to attract fresh sellers and remain capped near the $24.00-$24.10 confluence support breakpoint, turned resistance. The said area comprises the 100-day SMA and the 38.2% Fibo. level, which should act as a pivotal point.

A sustained strength beyond might trigger a short-covering rally and lift the XAG/USD back towards the 23.6% Fibo. level, around $24.45-$24.50 supply zone. Some follow-through buying has the potential to lift Siver towards the $24.75 intermediate hurdle en route to the $25.00 psychological mark and the next relevant barrier near the $25.25 supply zone.

Silver daily chart

Technical levels to watch

XAG/USD

Overview
Today last price	23.42
Today Daily Change	-0.15
Today Daily Change %	-0.64
Today daily open	23.57

Trends
Daily SMA20	24.32
Daily SMA50	23.72
Daily SMA100	24.03
Daily SMA200	23.15

Levels
Previous Daily High	23.84
Previous Daily Low	23.41
Previous Weekly High	25.15
Previous Weekly Low	24.04
Previous Monthly High	25.27
Previous Monthly Low	22.52
Daily Fibonacci 38.2%	23.57
Daily Fibonacci 61.8%	23.68
Daily Pivot Point S1	23.37
Daily Pivot Point S2	23.17
Daily Pivot Point S3	22.94
Daily Pivot Point R1	23.81
Daily Pivot Point R2	24.04
Daily Pivot Point R3	24.24

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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