Silver Price Analysis: XAG/USD slides to two-week low, seems vulnerable to slide further

Silver drifts lower for the second straight day and drops to a near two-week trough.
The technical setup favours bearish traders and supports prospects for further losses.
A sustained strength beyond the 200-day SMA is needed to negate the negative bias.

Haresh Menghani FXStreet

Silver (XAG/USD) remains under some selling pressure for the second successive day on Monday and drops to a near two-week low, below mid-$22.00s during the first half of the European session.

From a technical perspective, the recent repeated failures ahead of the very important 200-day Simple Moving Average (SMA) and the subsequent downfall favour bearish traders. Moreover, oscillators on the daily chart have again started drifting in the negative territory and suggest that the path of least resistance for the XAG/USD is to the downside.

Hence, some follow-through decline towards retesting sub-$22.00 levels, or a two-month low touched in January, looks like a distinct possibility. The downward trajectory could get extended further towards the $21.40-$21.35 intermediate support before the XAG/USD breaks below the $21.00 mark, towards the October swing low near the $20.70-$20.65 zone.

On the flip side, any meaningful recovery attempt is likely to confront stiff resistance ahead of the $23.00 round-figure mark. This is followed by by the $23.25-$23.30 supply zone, which nears the 200-day SMA, which if cleared decisively should set the stage for additional gains and allow the XAG/USD to aim back towards reclaiming the $24.00 round figure.

Some follow-through buying has the potential to lift the XAG/USD towards the next relevant hurdle near the $24.50-$24.60 area and the $25.00 psychological mark. The momentum could get extended further and lift the white metal to the $25.45-$25.50 intermediate barrier en route to the $26.00 neighbourhood, or the December swing high.

Silver daily chart

Technical levels to watch

XAG/USD

Overview
Today last price	22.42
Today Daily Change	-0.25
Today Daily Change %	-1.10
Today daily open	22.67

Trends
Daily SMA20	22.84
Daily SMA50	23.53
Daily SMA100	23.15
Daily SMA200	23.45

Levels
Previous Daily High	23.25
Previous Daily Low	22.4
Previous Weekly High	23.33
Previous Weekly Low	22.4
Previous Monthly High	24.09
Previous Monthly Low	21.93
Daily Fibonacci 38.2%	22.73
Daily Fibonacci 61.8%	22.93
Daily Pivot Point S1	22.29
Daily Pivot Point S2	21.92
Daily Pivot Point S3	21.44
Daily Pivot Point R1	23.14
Daily Pivot Point R2	23.62
Daily Pivot Point R3	24

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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