Silver Price Analysis: XAG/USD struggles to make it through $22.80 confluence resistance


Silver witnessed a modest intraday pullback from the $22.80 confluence hurdle.
Neutral technical indicators warrant caution before placing fresh directional bets.

Silver struggled to capitalize on its modest intraday uptick to one-and-half-week tops and once again started retreating from the $22.80 resistance zone. The commodity refreshed daily lows during the early North American session and was last seen hovering around mid-$22.00s, down 0.40% for the day.

The mentioned barrier marks a confluence region comprising of the 38.2% Fibonacci level of the $24.87-$21.42 downfall and 100-period EMA on the 4-hour chart. This should now act as a key pivotal point for short-term traders and help determine the next leg of a directional move for the XAG/USD.

Meanwhile, technical indicators on the daily chart – though have recovered from the bearish territory – have been struggling to gain any meaningful traction. Moreover, neutral oscillators on hourly charts haven't been supportive of a firm intraday direction, warranting caution for aggressive traders.

From current levels, the 23.6% Fibo. level, around the $22.25 area, should protect the immediate downside. A convincing break below might turn the XAG/USD vulnerable to break below the $22.00 mark and slide further towards challenging last week's swing lows, around the $21.45-40 region.

On the flip side, momentum beyond the $22.80 confluence hurdle might struggle to find acceptance above the $23.00 mark and falter near the 50% Fibo. level resistance. some follow-through buying beyond the $23.10-15 region will be seen as a fresh trigger for bulls and set the stage for further gains. The XAG/USD might then accelerate the momentum towards the 61.8% Fibo. level, around the $23.55-60 region, before eventually aiming to reclaim the $24.00 round-figure mark.

Silver 4-hour chart

fxsoriginal

Technical levels to watch

XAG/USD

Overview
Today last price 22.56
Today Daily Change -0.06
Today Daily Change % -0.27
Today daily open 22.62
 
Trends
Daily SMA20 22.81
Daily SMA50 23.6
Daily SMA100 25.1
Daily SMA200 25.68
 
Levels
Previous Daily High 22.68
Previous Daily Low 22.21
Previous Weekly High 22.85
Previous Weekly Low 21.42
Previous Monthly High 24.87
Previous Monthly Low 21.42
Daily Fibonacci 38.2% 22.39
Daily Fibonacci 61.8% 22.5
Daily Pivot Point S1 22.32
Daily Pivot Point S2 22.03
Daily Pivot Point S3 21.85
Daily Pivot Point R1 22.79
Daily Pivot Point R2 22.97
Daily Pivot Point R3 23.26

 

 

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