Silver Price Analysis: XAG/USD seems poised to challenge YTD low, around $18.15 region

Silver witnesses heavy selling on Thursday and drops back closer to the YTD low.
The technical set-up supports prospects for a further near-term depreciating move.
Oversold oscillators suggest that bears could take a brief pause near the $18.15 area.

Haresh Menghani FXStreet

Silver extends the previous day's retracement slide from the $19.10 region with some follow-through selling on Thursday. The downward trajectory dragged the white metal to the $18.30 area, well within the striking distance of a two-year low during the first half of the European session.

From a technical perspective, the XAG/USD on Wednesday struggled to find acceptance above the 50-period SMA on the 4-hour chart. The subsequent slide below the $18.55 intermediate support could be seen as a fresh trigger for bearish traders and supports prospects for an extension of over a one-month-old downward trajectory.

That said, technical indicators on the daily chart are flashing oversold conditions. This, in turn, suggests that any downfall is more likely to find some support and stall near the YTD low, around the $18.15 zone touched last week. This is closely followed by the $18.00 mark, which if broken would reaffirm the negative bias.

The XAG/USD might then accelerate the slide towards the $17.45-$17.40 intermediate support en-route to the $17.00 round-figure mark. The bearish trend could further get extended and drag spot prices to the next relevant support near the $16.70-$16.60 region.

On the flip side, the $18.55-$18.60 support breakpoint now becomes an immediate strong hurdle. Any further recovery might still be seen as a selling opportunity near the 50-period SMA on the 4-hour chart, currently around the $18.80 region. This, in turn, should cap the XAG/USD near the $19.00 mark, which should now act as a pivotal point.

Silver 4-hour chart

Key levels to watch

XAG/USD

Overview
Today last price	18.32
Today Daily Change	-0.36
Today Daily Change %	-1.93
Today daily open	18.68

Trends
Daily SMA20	19.62
Daily SMA50	20.89
Daily SMA100	22.69
Daily SMA200	23.06

Levels
Previous Daily High	19.1
Previous Daily Low	18.65
Previous Weekly High	19.41
Previous Weekly Low	18.15
Previous Monthly High	22.52
Previous Monthly Low	20.22
Daily Fibonacci 38.2%	18.82
Daily Fibonacci 61.8%	18.93
Daily Pivot Point S1	18.52
Daily Pivot Point S2	18.36
Daily Pivot Point S3	18.07
Daily Pivot Point R1	18.97
Daily Pivot Point R2	19.26
Daily Pivot Point R3	19.42

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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