- Silver drifted lower for the fifth successive day and dropped to an over one-week low on Thursday.
- Some follow-through selling below the $23.00 mark will set the stage for further near-term losses.
- Any attempted recovery move is likely to confront a stiff resistance near the 38.2% Fibo. level.
Silver extended its recent rejection slide from the very important 200-day SMA and witnessed some follow-through selling for the fifth successive day on Thursday. The downward trajectory dragged the white metal to the $23.00 neighbourhood, or a one-and-half-week low during the mid-European session.
The aforementioned handle coincides with the 50% Fibonacci retracement level of the $21.43-$24.70 strong move up. Given that technical indicators on the daily chart have just started drifting into the negative territory, a convincing break below will now be seen as a fresh trigger for bearish traders.
Some follow-through selling below last week's swing low, around the $22.80 area, will reaffirm the negative outlook and prompt aggressive technical selling. The XAG/USD might then turn vulnerable to accelerate the fall towards the $22.20 intermediate support en-route the $22.00 round-figure mark.
On the flip side, any meaningful recovery attempt might now confront stiff resistance and remain capped near the 38.2% Fibo. level, around the $23.40-$23.45 zone. Some follow-through buying might trigger a short-covering move towards the $24.00 mark, representing the 23.6% Fibo. level resistance.
Silver daily chart
Technical levels to watch
|Today last price||23.18|
|Today Daily Change||-0.32|
|Today Daily Change %||-1.36|
|Today daily open||23.5|
|Previous Daily High||23.98|
|Previous Daily Low||23.45|
|Previous Weekly High||24.7|
|Previous Weekly Low||22.81|
|Previous Monthly High||23.44|
|Previous Monthly Low||21.42|
|Daily Fibonacci 38.2%||23.65|
|Daily Fibonacci 61.8%||23.77|
|Daily Pivot Point S1||23.3|
|Daily Pivot Point S2||23.11|
|Daily Pivot Point S3||22.77|
|Daily Pivot Point R1||23.84|
|Daily Pivot Point R2||24.17|
|Daily Pivot Point R3||24.37|
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