Silver Price Analysis: XAG/USD retreats from multi-month top, downside seems limited


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  • Silver surrenders its intraday gains to the highest level since late April touched earlier this Monday.
  • The technical setup still favours bullish traders and supports prospects for further appreciating move.
  • A convincing breakdown below the 200-day SMA is needed to negate the near-term positive outlook.

Silver retreats from the mid-$23.00s or the highest level since late April touched earlier this Monday and drops to the lower end of its daily range during the early European session. The XAG/USD is currently trading just above the $23.00 round-figure mark, up around 0.10% for the day.

Slightly overbought RSI (14) on the daily chart turns out to be the only factor prompting some profit-taking around the XAG/USD. The near-term bias, however, remains tilted in favour of bullish traders in the wake of last week's sustained breakout through a technically significant 200-day SMA and the $22.00 mark. Hence, any subsequent pullback might still be seen as a buying opportunity and is more likely to remain limited, at least for the time being.

From current levels, any further slide below the $23.00 mark is likely to find decent support near the $22.60-$22.55 horizontal resistance breakpoint. The next relevant support is pegged near the $22.00 mark, below which the XAG/USD could slide further to the $21.40 area. The latter marks the 200 DMA and should act as a strong base. A convincing break below will negate the near-term positive outlook and pave the way for a deeper corrective pullback.

On the flip side, the multi-month peak, around the $23.50-$23.55 region, could act as an immediate resistance. Some follow-through buying should allow the XAG/USD to aim back to reclaim the $24.00 mark for the first time since April. The positive momentum could get extended towards the $24.25-$24.30 zone en route to the $24.55-$24.60 region.

Silver daily chart

fxsoriginal

Key levels to watch

XAG/USD

Overview
Today last price 23.16
Today Daily Change 0.02
Today Daily Change % 0.09
Today daily open 23.14
 
Trends
Daily SMA20 21.51
Daily SMA50 20.22
Daily SMA100 19.76
Daily SMA200 21.32
 
Levels
Previous Daily High 23.24
Previous Daily Low 22.28
Previous Weekly High 23.24
Previous Weekly Low 20.87
Previous Monthly High 22.25
Previous Monthly Low 18.84
Daily Fibonacci 38.2% 22.87
Daily Fibonacci 61.8% 22.64
Daily Pivot Point S1 22.53
Daily Pivot Point S2 21.93
Daily Pivot Point S3 21.57
Daily Pivot Point R1 23.49
Daily Pivot Point R2 23.84
Daily Pivot Point R3 24.45

 

 

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