Silver Price Analysis: XAG/USD retreats from multi-week top, holds above $24.00 mark

Silver edges lower on Monday and corrects further from over a three-month high.
The 200-period SMA on the 4-hour chart to act as a pivotal point and limit losses.
Bulls might wait for a move beyond the $24.35-40 area before placing fresh bets.

Haresh Menghani FXStreet

Silver attracts some intraday selling on the first day of a new week and moves away from over a three-week high, around the $24.35-$24.40 region touched on Friday. The white metal sticks to a mildly negative tone through the early part of the European session, albeit manages to hold its neck above the $24.00 round-figure mark.

Any subsequent slide below the aforementioned handle is more likely to find some support near the $23.85-$23.80 area, or the 200-period Simple Moving Average (SMA) on the 4-hour chart. Against the backdrop of positive technical indicators on 4-hour/daily charts, the said area could act as a pivotal point for intraday traders and help limit any further decline.

Silver 4-hour chart

A sustained break below, however, might prompt some technical selling and drag the XAG/USD towards the $23.55 region. This is closely followed by support near the $23.40 area, representing the 200-day SMA, which if broken decisively might shift the near-term bias in favour of bearish traders and pave the way for some meaningful downside.

On the flip side, the $24.35-$24.40 area might continue to act as an immediate strong resistance, which if cleared should allow the XAG/USD to surpass the $24.55-$24.60 intermediate hurdle and aim to reclaim the $25.00 psychological mark. The positive move could get extended further towards the $25.25 zone, or the July monthly swing high, en route to the $26.00 mark.

Zooming out to the daily chart, the recent price action witnessed since early June seems to constitute the formation of a bearish head and shoulders pattern on the daily chart. The pattern, however, will be confirmed on a sustained break below the neckline support, around the $22.20-$22.10 region.

XAG/USD daily chart

Key levels to watch

XAG/USD

Overview
Today last price	24.15
Today Daily Change	-0.09
Today Daily Change %	-0.37
Today daily open	24.24

Trends
Daily SMA20	23.32
Daily SMA50	23.53
Daily SMA100	23.98
Daily SMA200	23.35

Levels
Previous Daily High	24.38
Previous Daily Low	23.92
Previous Weekly High	24.38
Previous Weekly Low	22.67
Previous Monthly High	25.27
Previous Monthly Low	22.52
Daily Fibonacci 38.2%	24.21
Daily Fibonacci 61.8%	24.1
Daily Pivot Point S1	23.98
Daily Pivot Point S2	23.72
Daily Pivot Point S3	23.51
Daily Pivot Point R1	24.45
Daily Pivot Point R2	24.65
Daily Pivot Point R3	24.91

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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