- Silver remains under some selling pressure for the second successive day on Monday.
- The intraday break below the $23.55 confluence supports prospects for further losses.
- A sustained strength beyond the $24.00 mark is needed to offset the negative outlook.
Silver extends Friday's rejection slide from the $24.00 mark, or the 38.2% Fibonacci retracement level of the downfall witnessed in May and drifts lower for the second successive day. The white metal maintains its offered tone, just below the $23.50 level through the early European session on Monday and seems vulnerable to weaken further.
From a technical perspective, the intraday slide drags the XAG/USD below the $23.55 confluence support, comprising the 23.6% Fibo. level and the 100-period Simple Moving Average (SMA) on the 4-hour chart. Moreover, bearish oscillators on daily/4-hour charts add credence to the negative outlook and support prospects for a further intraday depreciating move.
Hence, a subsequent slide, towards testing the $23.00 round figure, looks like a distinct possibility. Some follow-through selling will expose the $22.70-$22.65 region, or over a two-month low touched in May, below which the XAG/USD could eventually drop to the $22.00 mark. The latter represents the very important 200-day SMA and should act as a pivotal point.
On the flip side, sustained strength beyond the $23.55 confluence support breakpoint could allow the XAG/USD to make a fresh attempt towards conquering the $24.00 mark. This is closely followed by the $24.15-$24.20 horizontal resistance, above which the momentum could push the commodity further towards the 50% Fibo. level, around the $24.45-$24.50 region.
The XAG/USD might eventually climb to the $24.80 zone, or the 61.8% Fibo. level, and aim to reclaim the $25.00 psychological mark for the first time since May 11. The upward trajectory could get extended further towards the $25.30-$25.35 supply zone en route to the $26.00 round figure and over a one-year high, around the $26.10-$26.15 area touched in May.
Silver 4-hour chart
Key levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.