- Silver regains some traction and stalls the overnight pullback from a multi-month high.
- The emergence of fresh buying near the very important 200 DMA favours bullish traders.
- The lack of follow-through buying warrants caution before positioning for further gains.
Silver attracts some buying near the $21.40 region on Wednesday and for now, seems to have stalled the previous day's sharp retracement slide from over a five-month high. The white metal climbs back above the mid-$21.00s during the early European session, though lacks follow-through.
From a technical perspective, the emergence of dip-buying near the very important 200-day SMA favours bullish traders. The positive outlook is reinforced by the fact that oscillators on the daily chart are holding comfortably in bullish territory. That said, the metal's inability to capitalize on the modest intraday uptick warrants some caution before positioning for any further appreciating move.
In the meantime, any subsequent move up beyond the $21.70 horizontal barrier could face resistance near the $22.00 round-figure mark. This is closely followed by the multi-month peak, around the $22.25 region, which if cleared will set the stage for additional gains. The XAGUSD might then accelerate the momentum towards the $22.50-$22.60 supply zone and eventually aim to reclaim the $23.00 mark.
On the flip side, the $21.40-$21.30 area might continue to protect the immediate downside ahead of a strong horizontal resistance breakpoint now turned support near the $21.00 mark. A convincing break below will make the XAGUSD vulnerable to test the next relevant support near the $20.40-$20.35 region. The corrective slide could get extended and drag spot prices towards the $20.00 psychological mark.
Silver daily chart
Key levels to watch
|Today last price||21.58|
|Today Daily Change||0.00|
|Today Daily Change %||0.00|
|Today daily open||21.58|
|Previous Daily High||22.25|
|Previous Daily Low||21.39|
|Previous Weekly High||22.06|
|Previous Weekly Low||20.39|
|Previous Monthly High||21.24|
|Previous Monthly Low||18.09|
|Daily Fibonacci 38.2%||21.72|
|Daily Fibonacci 61.8%||21.92|
|Daily Pivot Point S1||21.23|
|Daily Pivot Point S2||20.88|
|Daily Pivot Point S3||20.36|
|Daily Pivot Point R1||22.09|
|Daily Pivot Point R2||22.6|
|Daily Pivot Point R3||22.96|
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.