Silver Price Analysis: XAG/USD trades with modest losses around $25.00, downside seems limited


  • Silver drifts lower on the last day of the week, though lacks any follow-through selling.
  • The technical setup still favours bullish traders and supports prospects for further gains.
  • A convincing break below the $24.40-30 area is needed to negate the positive outlook.

Silver comes under some selling pressure on the last day of the week and extends its steady intraday descent through the first half of the European session. The white metal slips below the $25.00 psychological mark, though manage to hold its neck above the 100-period Simple Moving (SMA) on the 4-hour chart.

Technical indicators on the 4-hour chart have just started gaining negative traction, though are holding comfortably in the bullish territory on the daily chart. This, in turn, supports prospects for the emergence of some dip-buying at lower levels and suggests that the path of least resistance for the XAG/USD is to the upside. Hence, any subsequent slide is more likely to find decent support near the 23.6% Fibonacci retracement level of the March-April rally, around the $24.65 zone.

This is followed by the $24.40-$24.30 strong horizontal resistance breakpoint, now turned support, which if broken might negate the positive outlook and shift the near-term bias in favour of bearish traders. The XAG/USD might then turn vulnerable to weaken further below the $24.00 mark and test the 38.2% Fibo. level. Some follow-through selling should pave the way for an extension of the recent pullback from a one-year high, around the $26.10 region touched last week.

On the flip side, the $25.50-$25.60 region now seems to have emerged as an immediate strong resistance, above which the XAG/USD is likely to make a fresh attempt to conquer the $26.00 mark. Some follow-through buying will mark a fresh bullish breakout and set the stage for a further near-term appreciating move.

Silver 4-hour chart

fxsoriginal

Key levels to watch

XAG/USD

Overview
Today last price 25.12
Today Daily Change -0.17
Today Daily Change % -0.67
Today daily open 25.29
 
Trends
Daily SMA20 24.52
Daily SMA50 22.69
Daily SMA100 23.08
Daily SMA200 21.38
 
Levels
Previous Daily High 25.5
Previous Daily Low 25.06
Previous Weekly High 26.09
Previous Weekly Low 24.72
Previous Monthly High 24.16
Previous Monthly Low 19.9
Daily Fibonacci 38.2% 25.33
Daily Fibonacci 61.8% 25.23
Daily Pivot Point S1 25.07
Daily Pivot Point S2 24.84
Daily Pivot Point S3 24.63
Daily Pivot Point R1 25.51
Daily Pivot Point R2 25.72
Daily Pivot Point R3 25.95

 

 

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