Silver Price Analysis: XAG/USD remains depressed near $25.00 mark, seems vulnerable


  • Silver struggled to capitalize on the previous day’s positive move to two-week tops.
  • The emergence of fresh selling near the $25.30 supply zone favours bearish traders.
  • Bearish oscillators on the daily chart add credence to the near-term negative outlook.

Silver witnessed some selling through the first half of the trading action on Wednesday and eroded a part of the previous day's positive move to two-week tops. The commodity was last seen trading just below the $25.00 psychological mark, down 0.80% for the day.

The XAG/USD once again struggled to make it through the $25.30 supply zone and for now, seems to have stalled its recent recovery move from YTD lows. The mentioned barrier should now act as a key pivotal point for traders and help determine the near-term trajectory.

Meanwhile, technical indicators on the daily chart are still holding in the bearish territory and have just started gaining negative momentum on the 1-hour chart. Given repeated failures near the mentioned barrier, the set-up supports prospects for further losses.

From current levels, weekly swing lows, around the $24.60 region now seems to protect the immediate downside. Some follow-through selling now seems to accelerate the fall towards the $24.00 mark before the XAG/USD eventually drops to the $23.80-75 region (YTD lows).

On the flip side, bulls are likely to wait for a sustained move beyond the $25.30 strong barrier before positioning for any further gains. The XAG/USD might then surpass an intermediate resistance near the $25.55-60 region and aim to reclaim the $26.00 mark.

XAG/USD 4-hour chart

fxsoriginal

Technical levels to watch

XAG/USD

Overview
Today last price 25
Today Daily Change -0.16
Today Daily Change % -0.64
Today daily open 25.16
 
Trends
Daily SMA20 25.45
Daily SMA50 26.27
Daily SMA100 25.66
Daily SMA200 24.97
 
Levels
Previous Daily High 25.3
Previous Daily Low 24.77
Previous Weekly High 25.11
Previous Weekly Low 23.78
Previous Monthly High 27.08
Previous Monthly Low 23.78
Daily Fibonacci 38.2% 25.1
Daily Fibonacci 61.8% 24.97
Daily Pivot Point S1 24.86
Daily Pivot Point S2 24.55
Daily Pivot Point S3 24.33
Daily Pivot Point R1 25.38
Daily Pivot Point R2 25.61
Daily Pivot Point R3 25.91

 

 

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