- Silver reverses an intraday dip to sub-$21.00 levels, though lacks follow-through buying.
- Repeated failures to find acceptance above the 200 DMA warrant some caution for bulls.
- A convincing break below the weekly low is needed to negate any near-term positive bias.
Silver attracts some dip-buying on Thursday and stalls the previous day's retracement slide from the $21.60 area or the lowest level since June 22. The intraday bounce from sub-$21.00 levels, however, lacks follow-through as traders keenly await the release of the crucial US consumer inflation figures.
From a technical perspective, the XAGUSD, so far, has struggled to make it through the very important 200-day SMA resistance. Meanwhile, oscillators on the daily chart are holding comfortably in the bullish territory and support prospects for additional gains. That said, it will still be prudent to wait for a sustained move beyond the $21.60 area before confirming a fresh bullish breakout.
The XAGUSD might then accelerate the momentum and aim to reclaim the $22.00 round-figure mark. The next relevant hurdle is pegged near the $22.30-$22.35 region, which is closely followed by the June swing high, around mid-$22.00s. The latter should act as a key pivotal point, which if cleared decisively will set the stage for an extension of the recent rally from the vicinity of the $18.00 mark.
On the flip side, any meaningful pullback below the $21.00 mark could be seen as a buying opportunity and remain limited near the weekly low, around the $20.40 region. Failure to defend the said support might negate any near-term positive bias and drag the XAGUSD to the $20.00 psychological mark. The downward trajectory could get extended towards the $19.65 horizontal resistance breakpoint.
Silver daily chart
Key levels to watch
|Today last price||21.08|
|Today Daily Change||0.06|
|Today Daily Change %||0.29|
|Today daily open||21.02|
|Previous Daily High||21.61|
|Previous Daily Low||21|
|Previous Weekly High||20.91|
|Previous Weekly Low||18.84|
|Previous Monthly High||21.24|
|Previous Monthly Low||18.09|
|Daily Fibonacci 38.2%||21.23|
|Daily Fibonacci 61.8%||21.37|
|Daily Pivot Point S1||20.8|
|Daily Pivot Point S2||20.59|
|Daily Pivot Point S3||20.19|
|Daily Pivot Point R1||21.42|
|Daily Pivot Point R2||21.82|
|Daily Pivot Point R3||22.03|
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.