Silver Price Analysis: XAG/USD trades with modest losses below $23.00, remains vulnerable

Silver struggles to capitalize on Friday’s goodish bounce from the vicinity of the mid-$22.00s.
Neutral oscillators on the daily chart warrant some caution before placing directional bets.
A sustained strength beyond the 200-day SMA will shift the bias in favour of bullish traders.

Haresh Menghani FXStreet

Silver (XAG/USD) meets with a fresh supply on the first day of a new week and erodes a major part of Friday's recovery gains from over a one-week low. The white metal maintains its offered tone around the $22.85-$22.80 zone through the first half of the European session and seems vulnerable to prolonging its recent downfall witnessed over the past week or so.

From a technical perspective, the recent failure to find acceptance above the very important and significant 200-day Simple Moving Average (SMA) and the subsequent decline validates the near-term negative outlook for the XAG/USD. That said, oscillators on the daily chart are yet to confirm a bearish bias, making it prudent to wait for some follow-through selling before positioning for any further near-term depreciating move.

In the meantime, Friday's swing low, around mid-$22.00s, might continue to protect the immediate downside ahead of the $22.30 horizontal support. The next relevant support is pegged near the $21.90-$21.85 zone, or the two-month low touched in January. A convincing break below the latter will be seen as a fresh trigger for bearish traders and has the potential to drag the XAG/USD towards testing the $21.40-$21.35 support area.

On the flip side, the $23.00 round figure now seems to have emerged as an immediate hurdle, which if cleared might trigger a short-covering rally and lift the XAG/USD to the 200-day SMA, currently near the $23.30 zone. This is followed by the monthly peak, around mid-$23.00. A sustained strength beyond the latter will negate the negative outlook and allow the XAG/USD to aim back to reclaim the $24.00 round figure.

The momentum could extend further towards the $24.50-$24.60 region, above which the white metal could target the $25.00 psychological mark.

Silver daily chart

XAG/USD

Overview
Today last price	22.84
Today Daily Change	-0.11
Today Daily Change %	-0.48
Today daily open	22.95

Trends
Daily SMA20	22.76
Daily SMA50	23.09
Daily SMA100	23.2
Daily SMA200	23.29

Levels
Previous Daily High	23
Previous Daily Low	22.56
Previous Weekly High	23.46
Previous Weekly Low	22.56
Previous Monthly High	24.09
Previous Monthly Low	21.93
Daily Fibonacci 38.2%	22.83
Daily Fibonacci 61.8%	22.73
Daily Pivot Point S1	22.68
Daily Pivot Point S2	22.4
Daily Pivot Point S3	22.24
Daily Pivot Point R1	23.12
Daily Pivot Point R2	23.28
Daily Pivot Point R3	23.56

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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