Silver Price Analysis: XAG/USD plummets to three-week low, bears flirt with $22.00 mark

Silver witnessed aggressive selling on Thursday and dived to a near three-week low.
The technical set-up supports prospects for a further near-term depreciating move.
A sustained strength above the $22.00 mark is needed to negate the negative bias.

Haresh Menghani FXStreet

Silver dived to a near three-week low heading into the North American session, with bears now awaiting a sustained break below the $22.00 round-figure mark.

From a technical perspective, Thursday's steep decline confirmed a bearish break through the $22.65-60 region, support marked by the lower end of a one-and-half-week-old trading range. This comes on the back of the recent failures near the 100-day SMA and favours bearish traders.

Meanwhile, technical indicators on the daily chart have been gaining negative traction and are still far away from being in the oversold territory. This further adds credence to the near-term bearish outlook and supports prospects for an extension of the downward trajectory.

Some follow-through selling below the $22.00-$21.90 area will reaffirm the negative bias and drag the XAG/USD back to challenge the 2021 low, around the $21.40 region. The bearish trend could further get extended towards the next relevant support near the $21.00 round figure.

On the flip side, any attempted recovery move could now be seen as a selling opportunity around the $21.60-65 support breakpoint. This, in turn, should cap the upside for the XAG/USD near the $22.00 mark, which should act as a pivotal point for short-term traders.

Silver daily chart

Technical levels to watch

XAG/USD

Overview
Today last price	22.14
Today Daily Change	-0.59
Today Daily Change %	-2.60
Today daily open	22.73

Trends
Daily SMA20	22.63
Daily SMA50	23.32
Daily SMA100	23.34
Daily SMA200	24.74

Levels
Previous Daily High	23.26
Previous Daily Low	22.73
Previous Weekly High	23.44
Previous Weekly Low	22.59
Previous Monthly High	23.44
Previous Monthly Low	21.42
Daily Fibonacci 38.2%	22.93
Daily Fibonacci 61.8%	23.06
Daily Pivot Point S1	22.56
Daily Pivot Point S2	22.38
Daily Pivot Point S3	22.03
Daily Pivot Point R1	23.08
Daily Pivot Point R2	23.43
Daily Pivot Point R3	23.61

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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