Silver Price Analysis: XAG/USD seems vulnerable, ascending trend-line breakdown in play

Silver consolidates its recent losses to a near three-week low touched on Wednesday.
The technical setup favours bearish traders and supports prospects for further losses.
Any attempted recovery could be seen as a selling opportunity and remain capped.

Haresh Menghani FXStreet

Silver (XAG/USD) struggles to gain any meaningful traction on Thursday and oscillates in a narrow trading band around the $23.00 round-figure mark through the first half of the European session. The white metal, meanwhile, remains close to a three-week low touched on Wednesday and seems vulnerable to prolonging the descending trend witnessed over the past week or so.

From a technical perspective, the overnight breakdown and close below an ascending trend-line extending from the October 2023 low was seen as a fresh trigger for bearish traders. Furthermore, oscillators on the daily chart have been gaining negative traction and validate the near-term negative outlook, suggesting that the path of least resistance for the XAG/USD is to the downside.

Hence, a subsequent slide towards testing the December monthly swing low, around the mid-$22.00s, looks like a distinct possibility. The downward trajectory could get extended further towards the next relevant support near the $22.25 region en route to the $22.00 round-figure mark.

On the flip side, the ascending trend-line support breakpoint, around the $23.30-$23.35 area, now seems to act as an immediate strong barrier. Any subsequent move up is likely to attract fresh sellers near the $23.55 zone and remain capped near the $23.80 horizontal barrier. A sustained move beyond might trigger a short-covering rally and lift the XAG/USD beyond the $24.00 mark.

Some follow-through buying will suggest that the recent corrective decline has run its course and lift the XAG/USD further towards the $24.60 area (December 22 high). Bulls might eventually aim back towards reclaiming the $25.00 psychological mark.

Silver daily chart

Technical levels to watch

XAG/USD

Overview
Today last price	23.01
Today Daily Change	-0.01
Today Daily Change %	-0.04
Today daily open	23.02

Trends
Daily SMA20	23.79
Daily SMA50	23.66
Daily SMA100	23.31
Daily SMA200	23.67

Levels
Previous Daily High	23.73
Previous Daily Low	22.84
Previous Weekly High	24.49
Previous Weekly Low	23.54
Previous Monthly High	25.92
Previous Monthly Low	22.51
Daily Fibonacci 38.2%	23.18
Daily Fibonacci 61.8%	23.39
Daily Pivot Point S1	22.66
Daily Pivot Point S2	22.31
Daily Pivot Point S3	21.78
Daily Pivot Point R1	23.55
Daily Pivot Point R2	24.09
Daily Pivot Point R3	24.44

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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