Silver Price Analysis: XAG/USD trims a part of intraday losses to one-week lows

Silver witnessed some follow-through selling for the third successive day.
Slightly oversold RSI on the 1-hour chart helped limit any further losses.
The technical set-up still remains tilted firmly in favour of bearish traders.

Haresh Menghani FXStreet

Silver extended its recent pullback from the vicinity of the 50% Fibonacci level of a sharp fall from monthly swing highs and edged lower for the third successive day.

The downward momentum dragged the commodity to one-week lows, around the $23.15 region during the early part of the trading action on Thursday. However, oversold RSI (14) on the 1-hour chart assisted the XAG/USD to find some support near the 23.6% Fibo. level and trim a part of its intraday losses.

Looking at the broader technical picture, sustained weakness below the $23.50-45 confluence region – comprising of 38.2% Fibo. level and 100-hour SMA – was seen as a key trigger for bearish traders. This might have also set the stage for an extension of the ongoing downward trajectory.

The bearish outlook is reinforced by the fact that technical indicators on 4-hour/daily charts are holding deep in the bearish territory and are still shy of being in the oversold zone. Hence, any meaningful recovery attempt might still be seen as an opportunity for bearish traders.

From current levels, the daily swing lows, around the 23.15 region might protect the immediate downside. Some follow-through selling below the $23.00 mark will set the stage for a slide back towards challenging YTD lows, around the $22.20 region touched last Monday.

On the flip side, the $23.45-50 confluence support breakpoint now seems to act as an immediate strong hurdle. A sustained move beyond might trigger a short-covering move and push the XAG/USD back towards the $23.90-$24.00 region (38.2% Fibo.), which should now cap the upside.

Silver 1-hour chart

Technical levels to watch

XAG/USD

Overview
Today last price	23.34
Today Daily Change	-0.18
Today Daily Change %	-0.77
Today daily open	23.52

Trends
Daily SMA20	24.53
Daily SMA50	25.55
Daily SMA100	26.13
Daily SMA200	25.89

Levels
Previous Daily High	23.83
Previous Daily Low	23.29
Previous Weekly High	24.37
Previous Weekly Low	22.17
Previous Monthly High	26.78
Previous Monthly Low	24.5
Daily Fibonacci 38.2%	23.5
Daily Fibonacci 61.8%	23.62
Daily Pivot Point S1	23.26
Daily Pivot Point S2	23.01
Daily Pivot Point S3	22.73
Daily Pivot Point R1	23.8
Daily Pivot Point R2	24.08
Daily Pivot Point R3	24.33

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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