• Silver comes under renewed selling pressure and reverses Friday’s modest gains.
  • Repeated failures near a descending trend-line warrant some caution for bulls.
  • Strength beyond the $20.00 mark is needed to support prospects for further gains.

Silver struggles to capitalize on Friday's goodish rebound from a one-week low and meets with a fresh supply on the first day of a new week. The white metal maintains its offered tone through the first half of the European session and is currently placed near the daily low, around the $19.30 region.

From a technical perspective, the XAG/USD, so far, has been struggling to make it through a descending trend-line resistance extending from the May swing high. Repeated failures near the said barrier suggest that the recent recovery from over a two-year low, the $17.55 area might have already run out of steam.

That said, technical indicators on the daily chart are holding with a mild positive bias and support prospects for the emergence of some dip-buying at lower levels. Hence, it will be prudent to wait for some follow-through selling below the $19.00 mark before positioning for any further depreciating move.

The next relevant support is pegged near Friday's swing low, around the $18.80-$18.75 region, which if broken decisively will shift the near-term bias back in favour of bearish traders. The XAG/USD might then accelerate the fall to the $18.45-$18.40 intermediate support en route to the $18.00 round-figure mark.

On the flip side, the aforementioned descending trend-line, currently around the $19.85 region, might continue to act as an immediate strong barrier. This is closely followed by the $20.00 psychological mark. A sustained strength beyond the latter is needed to confirm a near-term bullish breakout and additional gains.

The subsequent move up has the potential to lift the XAG/USD to the 100-day SMA, near the $20.30 area. The momentum could further get extended towards the $20.50 region, above which spot prices could aim to reclaim the $21.00 round-figure mark before eventually climbing further towards the $21.50 area.

Silver daily chart

fxsoriginal

Key levels to watch

XAG/USD

Overview
Today last price 19.35
Today Daily Change -0.22
Today Daily Change % -1.12
Today daily open 19.57
 
Trends
Daily SMA20 18.8
Daily SMA50 19.25
Daily SMA100 20.34
Daily SMA200 22.13
 
Levels
Previous Daily High 19.62
Previous Daily Low 18.78
Previous Weekly High 20.02
Previous Weekly Low 18.78
Previous Monthly High 20.88
Previous Monthly Low 17.94
Daily Fibonacci 38.2% 19.3
Daily Fibonacci 61.8% 19.1
Daily Pivot Point S1 19.03
Daily Pivot Point S2 18.49
Daily Pivot Point S3 18.19
Daily Pivot Point R1 19.87
Daily Pivot Point R2 20.17
Daily Pivot Point R3 20.71

 

 

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