• Silver meets with a fresh supply on Monday, though lacks any follow-through selling.
  • Friday’s breakout through the $20.00 mark supports prospects for additional gains.
  • Bulls await a sustained strength beyond the 200-day EMA before placing fresh bets.

Silver struggles to capitalize on Friday's bullish breakout momentum through the $20.00 psychological mark and attracts some sellers near the 200-day Exponential Moving Average (EMA) on the first day of a new week. The white metal remains on the defensive through the early European session and is currently placed near the lower end of its daily range, just above the mid-$20.00s.

The aforementioned barrier, around the $20.85-$20.90 region, should now act as a pivotal point, which if cleared decisively will be seen as a fresh trigger for bullish traders. With technical indicators on the daily chart holding in the positive territory, the XAGUSD might then surpass the $21.00 mark and aim to test the October monthly swing high, around the $21.25 region.

Some follow-through buying will reaffirm the near-term constructive outlook and lift the XAGUSD further towards the $21.50 level where the key 200-day Simple Moving Average (SMA) lies, en route to the $22.00 round-figure mark. The momentum could get extended and allow spot prices to test the next relevant resistance near the $22.35-$22.45 horizontal zone.

On the flip side, any subsequent pullback might now be seen as a buying opportunity and remain limited near the $20.00 mark, which coincides with the 100-day EMA. A convincing break below will negate any near-term positive bias and shift the bias in favour of bearish traders. The XAGUSD will then slide to the $19.25 region en route to the $19.00-$18.90 pivotal support.

Some follow-through selling has the potential to drag spot prices to the floor of the range started in the summer at around $18.30-$18.25, which has undergone multiple tests. This is closely followed by the $18.00 round-figure mark, below which the XAGUSD could aim back to challenge the YTD low, around the $17.55 zone touched in September.

Silver daily chart

fxsoriginal

Key levels to watch

XAG/USD

Overview
Today last price 20.6
Today Daily Change -0.26
Today Daily Change % -1.25
Today daily open 20.86
 
Trends
Daily SMA20 19.21
Daily SMA50 19.17
Daily SMA100 19.47
Daily SMA200 21.5
 
Levels
Previous Daily High 20.91
Previous Daily Low 19.42
Previous Weekly High 20.91
Previous Weekly Low 18.84
Previous Monthly High 21.24
Previous Monthly Low 18.09
Daily Fibonacci 38.2% 20.34
Daily Fibonacci 61.8% 19.99
Daily Pivot Point S1 19.88
Daily Pivot Point S2 18.9
Daily Pivot Point S3 18.39
Daily Pivot Point R1 21.37
Daily Pivot Point R2 21.88
Daily Pivot Point R3 22.86

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD retreats below 1.0500 as mood sours

EUR/USD retreats below 1.0500 as mood sours

EUR/USD lost its traction and declined below 1.0500 in the second half of the day on Tuesday. The negative shift witnessed in risk sentiment, as reflected by falling US stocks, helps the US Dollar gather strength and makes it difficult for the pair to hold its ground.

EUR/USD News

GBP/USD drops below 1.2200 amid renewed US Dollar strength

GBP/USD drops below 1.2200 amid renewed US Dollar strength

GBP/USD turned south during the American trading hours and declined below 1.2200. With Wall Street's main indexes continuing to push lower following a negative start to the day, the US Dollar gathers strength as a safe haven and weighs on the pair.

GBPUSD News

Gold advances to $1,780 as US yieds edge lower

Gold advances to $1,780 as US yieds edge lower

Gold price gained traction and climbed to the $1,780 area on Tuesday. Following Monday's 2.5% increase, the benchmark 10-year US Treasury bond yield is down nearly 1% on the day at around 3.55%, fueling XAU/USD's rebound.

Gold News

Jim Cramer urges investors to sell crypto holdings, says XRP, Cardano, Dogecoin and MATIC could go to $0

Jim Cramer urges investors to sell crypto holdings, says XRP, Cardano, Dogecoin and MATIC could go to $0

Jim Cramer is an American TV personality and host of the Mad Money show on CNBC. Cramer urged investors on December 5 to sell their crypto holdings before it is too late. 

Read more

Preparation week ahead of Fed, ECB, BoE

Preparation week ahead of Fed, ECB, BoE

This week will prepare markets for the last key events of the year: policy meetings by the Fed, ECB and BoE on 14-15 December. It looks like the dollar's long positioning has now completely faded.

Read more

Forex MAJORS

Cryptocurrencies

Signatures