• Silver regains traction on Monday and reverses a major part of Friday’s fall to over a one-week low.
  • Bulls still need to wait for a move beyond the $20.30-35 confluence before placing aggressive bets.
  • A convincing break below the $19.20 support zone would negate any near-term positive outlook.

Silver attracts some dip-buying near the $19.80 region on Monday and recovers further from over a one-week low set in the previous session. The white metal builds on its steady intraday ascent through the early European session and climbs back above the $20.00 psychological mark in the last hour.

From a technical perspective, any subsequent move up is more likely to confront stiff resistance and remain capped near the $20.30-$20.35 confluence. The said barrier comprises the 50-day SMA and the 50% Fibonacci retracement level of the $22.52-$18.15 downfall, which should act as a pivotal point.

Oscillators on the daily chart, meanwhile, are holding in the bullish territory and have again started gaining positive traction on hourly charts. This, in turn, supports prospects for an eventual breakout through the aforementioned hurdle and a move towards the 61.8% Fibo. level, around the $20.85 area.

Some follow-through buying beyond the $21.00 mark would be seen as a fresh trigger for bulls and pave the way for a more toward the next relevant hurdle near the $21.40-$21.50 area. The XAG/USD could eventually aim to reclaim the $22.00 round figure, which coincides with the 100-day SMA resistance.

On the flip side, the 38.2% Fibo. level, around the $19.80-$19.75 region, now seems to protect the immediate downside. Any further decline is more likely to stall and find support near Friday's swing low, around the $19.55 area, which is followed by the 23.6% Fibo. level, around the $19.20 zone.

Failure to defend the aforementioned support levels would shift the bias back in favour of bearish traders and make the XAG/USD vulnerable to weaken below the $19.00 mark. The downfall could then drag spot prices to the $18.40 support en route to the YTD low, around the $18.15 region touched on July 14.

Silver daily chart

fxsoriginal

Key levels to watch

XAG/USD

Overview
Today last price 20.08
Today Daily Change 0.16
Today Daily Change % 0.80
Today daily open 19.92
 
Trends
Daily SMA20 19.25
Daily SMA50 20.37
Daily SMA100 21.98
Daily SMA200 22.8
 
Levels
Previous Daily High 20.25
Previous Daily Low 19.55
Previous Weekly High 20.51
Previous Weekly Low 19.55
Previous Monthly High 20.37
Previous Monthly Low 18.15
Daily Fibonacci 38.2% 19.82
Daily Fibonacci 61.8% 19.98
Daily Pivot Point S1 19.56
Daily Pivot Point S2 19.21
Daily Pivot Point S3 18.86
Daily Pivot Point R1 20.26
Daily Pivot Point R2 20.61
Daily Pivot Point R3 20.96

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD extends rebound to 1.0500 amid US Dollar weakness

EUR/USD extends rebound to 1.0500 amid US Dollar weakness

EUR/USD preserves its recovery momentum and trades near 1.0500 in the European session. Despite the risk-averse market atmosphere, the US Dollar is struggling to find demand ahead of mid-tier data releases, helping the pair hold in positive territory.

EUR/USD News

GBP/USD clings to recovery gains above 1.2150

GBP/USD clings to recovery gains above 1.2150

GBP/USD gained traction and climbed above 1.2150 during the European trading hours. The modest US Dollar weakness provides a boost to the pair as the market focus shifts to third-quarter Unit Labor Costs data from the United States.

GBPUSD News

Gold price struggles to gain traction, holds above $1,770

Gold price struggles to gain traction, holds above $1,770

Gold price is having a difficult time gathering bullish momentum and continuing to fluctuate in a tight range slightly above $1,770. The benchmark 10-year US Treasury bond yield holds steady above 3.5% ahead of US data, not allowing XAU/USD to find direction.

Gold News

JP Morgan joins forces with Ripple partner in the UAE, what this means for XRP price

JP Morgan joins forces with Ripple partner in the UAE, what this means for XRP price

JP Morgan will work alongside Al Fardan Exchange LLC in the United Arab Emirates (UAE) to power faster transaction settlement and transfers in fiat currencies.

Read more

Are global rate markets too complacent about central bank intentions for 2023?

Are global rate markets too complacent about central bank intentions for 2023?

Markets and economists are split between a 25 bps and a 50 bps rate hike (bringing the key rate to 4% or 4.25%) but are eager to hear about the Bank of Canada’s future guidance.

Read more

Forex MAJORS

Cryptocurrencies

Signatures