Silver Price Analysis: XAG/USD pulls back towards $23.00 but bulls remain hopeful


  • Silver retreats five-week-old horizontal resistance, pressured around intraday low of late.
  • 200-SMA, short-term support line challenges further downside even as RSI pullback favor sellers.
  • Upside break of $23.50 will confirm a bullish cup-and-handle chart pattern.

Silver begins 2022 with mild losses of around 0.50% intraday while stepping back from the weekly top towards $23.00 during early Monday.

In doing so, the bright metal eases from a five-week-old horizontal resistance area, surrounding $23.40-45.

Given the RSI line’s retreat from the nearly overbought region, the latest declines in silver prices are likely determined to aim for the 200-SMA level surrounding the $23.00 threshold.

Following that, an upward sloping support line from December 15, around $22.80, will be in focus.

Meanwhile, an upside clearance of the $23.45 will need validation from multiple tops marked during late November surrounding $23.75.

Following that, a confirmation of the bullish cup-and-handle chart pattern will play its role to direct XAG/USD buyers toward the mid-$25.00 zone.

To sum up, silver prices are likely to witness further declines but the bears have miles to go.

Silver: Four-hour chart

Trend: Pullback expected

Additional important levels

Overview
Today last price 23.16
Today Daily Change -0.11
Today Daily Change % -0.47%
Today daily open 23.27
 
Trends
Daily SMA20 22.56
Daily SMA50 23.41
Daily SMA100 23.36
Daily SMA200 24.76
 
Levels
Previous Daily High 23.34
Previous Daily Low 23.02
Previous Weekly High 23.44
Previous Weekly Low 22.59
Previous Monthly High 23.44
Previous Monthly Low 21.42
Daily Fibonacci 38.2% 23.22
Daily Fibonacci 61.8% 23.14
Daily Pivot Point S1 23.08
Daily Pivot Point S2 22.89
Daily Pivot Point S3 22.76
Daily Pivot Point R1 23.4
Daily Pivot Point R2 23.53
Daily Pivot Point R3 23.72

 

 

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