Silver Price Analysis: XAG/USD struggles near weekly low, seems vulnerable below $23.00

Silver remains under some selling pressure for the third straight day and refreshes weekly low.
The technical setup seems tilted in favour of bearish and supports prospects for additional losses.
A sustained strength beyond the $23.55-65 confluence is needed to negate the bearish outlook.

Haresh Menghani FXStreet

Silver (XAG/USD) drifts lower for the third successive day on Wednesday and drops to a fresh weekly low, around the $22.80 region during the early European session.

From a technical perspective, the recent repeated failures to build on the attempted recovery beyond the 100-day Simple Moving Average (SMA) and rejection near a multi-month-old ascending trend-line support breakpoint favour bearish traders. Moreover, oscillators on the daily chart are holding deep in the negative territory and are far from being in the oversold zone. This suggests that the path of least resistance for the XAG/USD is to the downside.

That said, it will still be prudent to wait for some follow-through selling below the multi-week trough, around the $22.70 region touched last Thursday before positioning for further losses. The XAG/USD might then turn vulnerable to weaken further below the December monthly swing low, around the mid-$22.00s, towards testing the next relevant support near the $22.25 region, and eventually drop further to the $22.00 round-figure mark.

On the flip side, the 100-day SMA, currently around the $23.30 area, might continue to act as an immediate hurdle ahead of the $23.55-$23.65 confluence – comprising the aforementioned trend-line support breakpoint, the 100- and 50-day SMAs. That said, a sustained strength beyond the latter might trigger a short-covering rally and lift the XAG/USD to the $23.80 horizontal barrier en route to the $24.00 round-figure mark.

Some follow-through buying will suggest that the recent corrective downfall since late December has run its course and shift the bias in favour of bullish traders. The XAG/USD might then accelerate the positive momentum towards the $24.60 area, or the December 22 high, before aiming back towards reclaiming the $25.00 psychological mark.

Silver daily chart

Technical levels to watch

XAG/USD

Overview
Today last price	22.92
Today Daily Change	-0.03
Today Daily Change %	-0.13
Today daily open	22.95

Trends
Daily SMA20	23.78
Daily SMA50	23.66
Daily SMA100	23.31
Daily SMA200	23.65

Levels
Previous Daily High	23.37
Previous Daily Low	22.9
Previous Weekly High	24.09
Previous Weekly Low	22.69
Previous Monthly High	25.92
Previous Monthly Low	22.51
Daily Fibonacci 38.2%	23.08
Daily Fibonacci 61.8%	23.19
Daily Pivot Point S1	22.77
Daily Pivot Point S2	22.6
Daily Pivot Point S3	22.3
Daily Pivot Point R1	23.25
Daily Pivot Point R2	23.55
Daily Pivot Point R3	23.73

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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