Silver Price Analysis: XAG/USD seems vulnerable near $22.30, two-week low

Silver loses ground for the third straight day and drops to over a two-week low.
The technical setup favours bears and supports prospects for additional losses.
A sustained move above the 200-day SMA is needed to negate the negative bias.

Haresh Menghani FXStreet

Silver (XAG/USD) remains under heavy selling pressure for the third successive day on Wednesday – also marking the fifth day of a negative move in the previous six and drops to over a two-week low during the first half of the European session. The white metal currently trades around the $22.30 region and seems vulnerable to prolonging its recent downfall witnessed over the past two weeks or so.

From a technical perspective, the recent failure to find acceptance above the very important and significant 200-day Simple Moving Average (SMA) and the subsequent decline validate the near-term negative outlook. Moreover, oscillators on the daily chart have just started gaining negative traction and further suggest that the path of least resistance for the XAG/USD remains to the downside.

Hence, some follow-through weakness towards retesting sub-$22.00 levels, or the two-month low touched in January, looks like a distinct possibility. A convincing break below the latter will be seen as a fresh trigger for bearish traders and pave the way for additional losses, dragging the XAG/USD towards the $21.40-$21.35 support zone.

On the flip side, the daily swing high, around the mid-$22.00s, now seems to act as an immediate hurdle ahead of the $22.70-$22.75 region. This is closely followed by the $23.00 round figure, which if cleared decisively might trigger a short-covering rally, though is likely to attract fresh sellers near the 200-day SMA, currently pegged around the $23.30 zone, and remain capped near mid-$23.00, or the monthly peak.

Silver daily chart

XAG/USD

Overview
Today last price	22.3
Today Daily Change	-0.18
Today Daily Change %	-0.80
Today daily open	22.48

Trends
Daily SMA20	22.7
Daily SMA50	23.04
Daily SMA100	23.21
Daily SMA200	23.28

Levels
Previous Daily High	22.72
Previous Daily Low	22.42
Previous Weekly High	23.46
Previous Weekly Low	22.56
Previous Monthly High	24.09
Previous Monthly Low	21.93
Daily Fibonacci 38.2%	22.53
Daily Fibonacci 61.8%	22.6
Daily Pivot Point S1	22.36
Daily Pivot Point S2	22.25
Daily Pivot Point S3	22.07
Daily Pivot Point R1	22.66
Daily Pivot Point R2	22.83
Daily Pivot Point R3	22.95

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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