- Silver caught aggressive bids on Thursday and surged to a one-week high.
- The lack of follow-through beyond the 50% Fibo. warrant caution for bulls.
- Break below mid-$21.00s would set the stage for further near-term losses.
Silver witnessed a dramatic intraday turnaround and rallied nearly 3% from a three-day low, around the $21.30-25 region touched earlier this Thursday. The strong momentum pushed the white metal to a one-week high during the early North American session, with bulls now awaiting sustained strength beyond the $22.00 round-figure mark.
From a technical perspective, the XAG/USD, so far, has struggled to find acceptance above the 50% Fibonacci retracement level of the $23.24-$20.46 downfall. Moreover, technical indicators on the daily chart - though have been recovering - are still holding deep in the bearish territory. This warrants caution before positioning for any further gains.
Hence, a subsequent move up is more likely to attract some selling near the 100-period SMA on the 4-hour chart, currently around the $22.10 region. This is closely followed by the 61.8% Fibo. level, around the $22.20 area, which if cleared will be seen as a fresh trigger for bulls and set the stage for an extension of the recent recovery from the YTD low.
On the flip side, any meaningful pullback now seems to find decent support near mid-$21.00s, or the 38.2% Fibo. level. Sustained breakthrough, leading to some follow-through weakness below the daily low, around the $21.30-$21.25 region, will shift the bias back in favour of bearish traders and prompt aggressive technical selling around the XAG/USD.
The downward trajectory would then drag spot prices to the 23.6% Fibo. level, around the $21.15 area, en-route the $21.00 mark. Bearish traders could eventually aim back to challenge the YTD low, around the $20.45 region touched last week.
Silver 4-hour chart
Key levels to watch
|Today last price||21.59|
|Today Daily Change||-0.04|
|Today Daily Change %||-0.18|
|Today daily open||21.63|
|Previous Daily High||21.92|
|Previous Daily Low||21.51|
|Previous Weekly High||22.37|
|Previous Weekly Low||20.46|
|Previous Monthly High||26.22|
|Previous Monthly Low||22.68|
|Daily Fibonacci 38.2%||21.76|
|Daily Fibonacci 61.8%||21.67|
|Daily Pivot Point S1||21.46|
|Daily Pivot Point S2||21.28|
|Daily Pivot Point S3||21.05|
|Daily Pivot Point R1||21.86|
|Daily Pivot Point R2||22.09|
|Daily Pivot Point R3||22.27|
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.