Silver Price Analysis: XAG/USD rebound needs validation from 50-DMA


  • Silver refreshes intraday high, extends bounce off six-week low.
  • Bearish MACD signals, sustained break of two-month-old previous support line favor sellers.
  • Multiple levels from August restrict immediate downside, September’s bottom lure bears.

Silver (XAG/USD) consolidates monthly losses around the lowest levels since mid-October during early Monday.

The bright metal dropped to the multi-day low following the previous week’s clear downside break of an ascending trend line from September 29 and 50-DMA. However, a three-month-old horizontal support area triggered the quote’s latest bounce.

Even so, bearish MACD signals and sustained trading below the stated support-turned-resistance line keep XAG/USD sellers hopeful.

That said, the 38.2% Fibonacci retracement (Fibo.) level of July-September downside and 50-DMA, respectively around $23.50 and $23.60, limit the commodity’s rebound

Should the silver buyers manage to cross the $23.60 hurdle, 50% Fibo. level of $24.10 and the stated previous support line, around $24.20 by the press time, will be in focus.

Alternatively, the $22.91-85 support area becomes the key challenge for the short-term sellers ahead of August month’s low near $22.20 and the $22.00 threshold.

Given the silver bears stay on the front foot past $22.00, the yearly bottom surrounding $21.40 may challenge the commodity bears before directing them to the $20.00 psychological magnet.

Silver: Daily chart

Trend: Bearish

additional important levels

Overview
Today last price 23.42
Today Daily Change 0.31
Today Daily Change % 1.34%
Today daily open 23.11
 
Trends
Daily SMA20 24.28
Daily SMA50 23.56
Daily SMA100 23.98
Daily SMA200 25.22
 
Levels
Previous Daily High 23.73
Previous Daily Low 22.92
Previous Weekly High 24.89
Previous Weekly Low 22.92
Previous Monthly High 24.83
Previous Monthly Low 22
Daily Fibonacci 38.2% 23.23
Daily Fibonacci 61.8% 23.42
Daily Pivot Point S1 22.78
Daily Pivot Point S2 22.44
Daily Pivot Point S3 21.96
Daily Pivot Point R1 23.59
Daily Pivot Point R2 24.07
Daily Pivot Point R3 24.4

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD struggles to rebound, holds near 1.1150 after US data

EUR/USD trades around 1.1150 in the early American session on Friday as investors assess the latest inflation data from the US. According to the US Bureau of Economic Analysis, Core PCE Price Index rose to 4.9% on a yearly basis in December from 4.7% in November, surpassing the market expectation of 4.8%. 

EUR/USD News

GBP/USD clings to small gains above 1.3400 on mixed US data

GBP/USD posts modest daily gains slightly above 1.3400 on Friday as the dollar rally loses steam. The data from the US showed that the core PCE inflation edged higher to 4.9% in December. On a negative note, Personal Spending contracted by 0.6% on a monthly basis.

GBP/USD News

Gold recovers modestly after US data, stays below $1,800

Gold managed to stage a rebound from the multi-week low it set below $1,780 but continues to trade deep in the red near $1,790. The benchmark 10-year US Treasury bond yield is rising more than 1% on the day after US data, limiting XAU/USD's recovery.

Gold News

Bitcoin Weekly Forecast: Federal Reserve cannot tame BTC’s uptrend

Bitcoin has experienced some significant losses over the past few weeks, with a more dramatic drop occurring this week after the Fed's decision was announced. As losses have extended and BTC has entered into the $30,000 zone, concerns regarding Bitcoin being in a bear market have increased.

Read more

Apple share price set to rise after another record quarter

With the Nasdaq closing at its lowest level in seven months yesterday, the Apple share price has also found itself on the end of the recent weakness in tech shares, down over 12% from its record highs in early January.

Read more

Forex MAJORS

Cryptocurrencies

Signatures