Silver Price Analysis: XAG/USD seems vulnerable near 38.2% Fibo., lowest since April

Silver consolidates the overnight slide to its lowest level since early April.
The setup favours bearish traders and supports prospects for further losses.
Any attempted recovery is likely to remain capped near the $24.25-30 area.

Haresh Menghani FXStreet

Silver enters a bearish consolidation phase on Wednesday and oscillates in a narrow trading band around the $23.70-$23.75 area, just above its lowest level since April 3 touched the previous day.

From a technical perspective, the aforementioned area represents the 38.2% Fibonacci retracement level of the March-May rise. Some follow-through selling will expose the 100-day Simple Moving Average (SMA), currently pegged around the $23.40-$23.35 region, below which the XAG/USD could slide towards 50% Fibo. level, around the $23.00 round-figure mark.

Some follow-through selling below the latter will be seen as a fresh trigger for bearish traders and set the stage for an extension of the recent sharp pullback from over a one-year top touched earlier this month. The XAG/USD might then accelerate the fall towards the $22.65-$22.60 intermediate support before dropping to the $22.30-$22.25 zone, or the 61.8% Fibo. level.

Meanwhile, oscillators on the daily chart are holding deep in the negative territory and are still far from being in the oversold zone. Hence, any attempted recovery back above the $24.00 mark is more likely to attract fresh sellers and remain capped near the $24.25-$24.30 supply zone. That said, some follow-through buying might prompt an aggressive short-covering rally.

The XAG/USD might then surpass the 23.6% Fibo. level, around the $24.60 zone, aim to reclaim the $25.00 psychological mark. The momentum could get extended further towards the $25.30-$25.40 supply zone en route to the $26.00 round figure and the YTD peak, around the $26.10-$26.15 region.

Silver daily chart

Key levels to watch

XAG/USD

Overview
Today last price	23.73
Today Daily Change	-0.03
Today Daily Change %	-0.13
Today daily open	23.76

Trends
Daily SMA20	25.05
Daily SMA50	23.98
Daily SMA100	23.4
Daily SMA200	21.89

Levels
Previous Daily High	24.11
Previous Daily Low	23.64
Previous Weekly High	25.92
Previous Weekly Low	23.74
Previous Monthly High	26.09
Previous Monthly Low	23.57
Daily Fibonacci 38.2%	23.82
Daily Fibonacci 61.8%	23.93
Daily Pivot Point S1	23.56
Daily Pivot Point S2	23.36
Daily Pivot Point S3	23.09
Daily Pivot Point R1	24.03
Daily Pivot Point R2	24.3
Daily Pivot Point R3	24.5

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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