Silver Price Analysis: XAG/USD remains below 200-day SMA/61.8% Fibo. confluence

Silver climbs to a one-week high on Monday, albeit struggles to capitalize on the move up.
The technical setup seems tilted in favour of bulls and supports prospects for further gains.
A sustained move beyond the $23.30-40 confluence is needed to reaffirm the positive bias.

Haresh Menghani FXStreet

Silver (XAG/USD) gains some positive traction for the second successive day and touches a one-week high, around the $23.20 area during the Asian session on Monday. The white metal, however, struggles to capitalize on the move and remains below the $23.30-$23.40 confluence, comprising the 200-day Simple Moving Average (SMA) and the 61.8% Fibonacci retracement level of the August-October downfall.

The aforementioned hurdle is followed by the $23.70-$23.75 supply zone, which should now act as a key pivotal point. Technical indicators on the daily chart, meanwhile, have been gaining positive traction and are still far from being in the overbought zone. Hence, a sustained strength beyond the said barriers will be seen as a fresh trigger for the XAG/USD bulls and pave the way for some meaningful appreciating move.

The subsequent move up could get extended beyond the $24.00 round-figure mark, towards testing the next relevant resistance near the $24.20 region. Some follow-through buying will confirm a fresh breakout and allow the XAG/USD to make a fresh attempt towards conquering the $25.00 psychological mark.

On the flip side, slide back below the $23.00 round figure now seems to find some support near the $22.85 region, or the 50% Fibo. level. The next relevant support is pegged near last week's swing low, around the $22.55 area, ahead of the 38.2% Fibo. level, around the $22.35-$22.30 static support. Failure to defend the said support levels might shift the bias in favour of the XAG/USD bears.

The downward trajectory could then get extended further towards the $22.00 round-figure mark, en route to the $21.70 region, representing 23.6% Fibo. level. Some follow-through selling could make the XAG/USD vulnerable to accelerate the fall further towards the $21.00 level before eventually dropping to the $20.70-$20.65 region, or its lowest level since March touched earlier this month.

Silver daily chart

Technical levels to watch

XAG/USD

Overview
Today last price	23.12
Today Daily Change	0.03
Today Daily Change %	0.13
Today daily open	23.09

Trends
Daily SMA20	22.27
Daily SMA50	22.97
Daily SMA100	23.25
Daily SMA200	23.3

Levels
Previous Daily High	23.13
Previous Daily Low	22.66
Previous Weekly High	23.36
Previous Weekly Low	22.44
Previous Monthly High	24.82
Previous Monthly Low	22.12
Daily Fibonacci 38.2%	22.95
Daily Fibonacci 61.8%	22.84
Daily Pivot Point S1	22.79
Daily Pivot Point S2	22.49
Daily Pivot Point S3	22.33
Daily Pivot Point R1	23.25
Daily Pivot Point R2	23.42
Daily Pivot Point R3	23.72

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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