Silver Price Analysis: XAG/USD marches towards 200-SMA inside weekly bearish channel

Silver price renews intraday high to reverse the previous day’s slump to five-week low.
200-SMA, bearish chart formation keeps XAG/USD bears hopeful.
Monthly high acts as the last defense of Silver bears.

Anil Panchal FXStreet

Silver price (XAG/USD) picks up bids to refresh intraday high near $23.55 as it bounces off the five-week low marked the previous day. In doing so, the bright metal recovers from the support line of a one-week-long descending trend channel.

As the XAG/USD recovery takes clues from the RSI (14) rebound from the overbought territory, the latest run-up is likely to poke the immediate hurdle, namely the 200-SMA level surrounding $23.65.

However, the quote’s further upside will need validation from the top line of the stated channel, close to $24.10 at the latest.

Even so, the monthly high near $24.55, also the highest level since late April 2022, could challenge the Silver buyers, a break of which won’t hesitate to direct the commodity price towards the April 2022 high near $26.25.

On the contrary, the 61.8% Fibonacci retracement level of the XAG/USD’s upside from December 16 to January 03, around $23.30, restricts immediate declines of the metal.

Following that, the aforementioned bearish chart formation’s support line, near $23.00 by the press time, will be crucial to watch for a corrective bounce.

In a case where the Silver price fails to rebound from $23.00, a slump toward the mid-2022 peak surrounding $22.50 can’t be ruled out.

Silver price: Four-hour chart

Trend: Limited recovery expected

Additional important levels

Overview
Today last price	23.54
Today Daily Change	0.09
Today Daily Change %	0.38%
Today daily open	23.45

Trends
Daily SMA20	23.79
Daily SMA50	23.01
Daily SMA100	21.28
Daily SMA200	21.03

Levels
Previous Daily High	24.16
Previous Daily Low	22.76
Previous Weekly High	24.51
Previous Weekly Low	23.17
Previous Monthly High	24.3
Previous Monthly Low	22.03
Daily Fibonacci 38.2%	23.3
Daily Fibonacci 61.8%	23.62
Daily Pivot Point S1	22.76
Daily Pivot Point S2	22.06
Daily Pivot Point S3	21.36
Daily Pivot Point R1	24.15
Daily Pivot Point R2	24.86
Daily Pivot Point R3	25.55

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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