Silver Price Analysis: XAG/USD holds above 100-day SMA pivotal support near mid-$19.00s

Silver finds some support near 100-day SMA, though struggles to attract any buyers.
The setup still favours bullish traders and supports prospects for additional gains.
A sustained break below the $19.00 mark is needed to negate the positive outlook.

Haresh Menghani FXStreet

Silver struggles to gain any meaningful traction on Wednesday and remains confined in a narrow trading band above the mid-$19.00s through the early European session.

From a technical perspective, the overnight retracement slide from the $20.00 psychological mark stalls near the 100-day SMA. The said support coincides with the 50% Fibonacci retracement level of the recent fall from the October monthly swing high and should act as a pivotal point for the XAG/USD.

Given the overnight breakout through the aforementioned confluence barrier, the technical set-up seems tilted firmly in favour of bullish traders. Moreover, oscillators on the daily chart have just started moving into positive territory and support prospects for a further appreciating move. Hence, a fresh attempt towards conquering the $20.00 round figure, also marking the 61.8% Fibo. level, looks like a distinct possibility. Some follow-through buying has the potential to lift the XAG/USD further towards an intermediate resistance near the $20.50 region en route to the $21.00 mark.

On the flip side, weakness below the mid-$19.00s (100 DMA) might continue to attract some buyers near the $19.00-$18.90 support zone, representing the 23.6% Fibo. level. A convincing break below the latter will shift the near-term bias in favour of bearish traders and make the XAG/USD vulnerable. The subsequent downward trajectory could then drag the XAG/USD towards the next relevant support near the $18.30-$18.25 region. This is closely followed by the $18.00 round-figure mark, below which spot prices could aim to challenge the YTD low, around the $17.55 area touched in September.

Silver daily chart

Key levels to watch

XAG/USD

Overview
Today last price	19.64
Today Daily Change	0.01
Today Daily Change %	0.05
Today daily open	19.63

Trends
Daily SMA20	19.31
Daily SMA50	19.12
Daily SMA100	19.53
Daily SMA200	21.55

Levels
Previous Daily High	20.03
Previous Daily Low	19.13
Previous Weekly High	19.78
Previous Weekly Low	18.79
Previous Monthly High	21.24
Previous Monthly Low	18.09
Daily Fibonacci 38.2%	19.69
Daily Fibonacci 61.8%	19.47
Daily Pivot Point S1	19.16
Daily Pivot Point S2	18.7
Daily Pivot Point S3	18.26
Daily Pivot Point R1	20.07
Daily Pivot Point R2	20.5
Daily Pivot Point R3	20.97

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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