- 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
|Today last price||23.16|
|Today Daily Change||-0.11|
|Today Daily Change %||-0.47%|
|Today daily open||23.27|
|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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