Silver Price Analysis: XAG/USD hits one-week low, manages to hold above $24.00 mark

Silver edges lower for the fourth successive day and touches a one-week low on Monday.
The mixed oscillators on hourly/daily charts warrant caution before placing directional bets.
A sustained move beyond the $25.00 mark will be seen as a fresh trigger for bullish traders.

Haresh Menghani FXStreet

Silver remains on the defensive for the fourth successive day on Monday and drops to a one-week low during the early part of the European session, though manages to hold above the $24.00 round-figure mark.

The downtick could be attributed to some technical selling after last week's repeated failures to break through a descending trend line extending from over a one-year high, around the $26.10-$26.15 region touched in May. That said, mixed oscillators on hourly/daily charts warrant some caution before placing bearish bets around the XAG/USD and positioning for any further decline.

Hence, any subsequent fall is more likely to find some support near the 200-period Simple Moving Average (SMA) on the 4-hour chart, currently pegged around the $23.80 region. Some follow-through selling, however, should pave the way for a fall towards the $23.55 region, which is closely followed by the 200-day SMA, near the $23.40 region. The latter should act as a pivotal point for the XAG/USD.

A convincing break below will be seen as a fresh trigger for bearish traders and expose the $23.00 round figure. The downward trajectory could get extended further and drag the XAG/USD towards strong horizontal support near the $22.20-$22.10 region.

On the flip side, the $24.30-$24.35 area now seems to act as an immediate hurdle ahead of the aforementioned descending trend-line resistance, currently around the $24.75 region. This is followed by the $25.00 psychological mark and July monthly swing high, around the $25.25 region. A sustained strength beyond should allow the XAG/USD to make a fresh attempt to conquer the $26.00 mark.

Silver daily chart

Technical levels to watch

XAG/USD

Overview
Today last price	24.14
Today Daily Change	-0.04
Today Daily Change %	-0.17
Today daily open	24.18

Trends
Daily SMA20	23.43
Daily SMA50	23.68
Daily SMA100	23.93
Daily SMA200	23.43

Levels
Previous Daily High	24.82
Previous Daily Low	24.16
Previous Weekly High	25.02
Previous Weekly Low	24.05
Previous Monthly High	25.02
Previous Monthly Low	22.23
Daily Fibonacci 38.2%	24.41
Daily Fibonacci 61.8%	24.57
Daily Pivot Point S1	23.95
Daily Pivot Point S2	23.72
Daily Pivot Point S3	23.28
Daily Pivot Point R1	24.62
Daily Pivot Point R2	25.06
Daily Pivot Point R3	25.29

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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