Silver Price Analysis: XAG/USD holds steady above mid-$22.00s, bearish bias remains


  • Silver attracted some buying on Friday, albeit lacked any follow-through buying.
  • The set-up favours bearish traders and supports prospects for additional losses.
  • A sustained break below the $22.50-45 area is needed to reaffirm the negative bias.

Silver regained positive traction on Friday and reversed the previous day's modest losses, albeit lacked strong follow-through buying. The commodity held on to its gains through the first half of the European session and was last seen trading around the $22.65 region, up over 0.60% for the day.

From a technical perspective, the post-FOMC bullish spike on Wednesday struggled to find acceptance above the $23.00 round-figure mark. The subsequent pullback from the $23.15 region constitutes the formation of a bearish double-top on hourly charts and supports prospects for further losses.

The negative outlook is reinforced by the fact that technical indicators on the daily chart are still holding deep in the bearish territory. Moreover, oscillators on the 4-hour chart – though have managed to recover from lower levels – have been struggling to gain any meaningful traction.

However, it will be prudent to wait for sustained weakness below the $22.50-45 horizontal support before positioning for any further depreciating move. The XAG/USD might then accelerate the slide back towards challenging YTD lows, around the $22.00 round-figure mark touched earlier this week.

On the flip side, any subsequent positive move might continue to confront stiff resistance near the $23.00 mark and remain capped near the $23.15 region. A sustained move beyond might trigger a short-covering move and lift the XAG/USD towards the $23.70 area en-route $24.00 mark.

Silver 4-hour chart

fxsoriginal

Technical levels to watch

XAG/USD

Overview
Today last price 22.64
Today Daily Change 0.13
Today Daily Change % 0.58
Today daily open 22.51
 
Trends
Daily SMA20 23.61
Daily SMA50 24.1
Daily SMA100 25.56
Daily SMA200 25.83
 
Levels
Previous Daily High 22.88
Previous Daily Low 22.47
Previous Weekly High 23.97
Previous Weekly Low 22.33
Previous Monthly High 26
Previous Monthly Low 22.17
Daily Fibonacci 38.2% 22.63
Daily Fibonacci 61.8% 22.73
Daily Pivot Point S1 22.36
Daily Pivot Point S2 22.22
Daily Pivot Point S3 21.96
Daily Pivot Point R1 22.77
Daily Pivot Point R2 23.03
Daily Pivot Point R3 23.18

 

 

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