XAG/USD remains depressed around mid-$23.00s, holds above 61.8% Fibo.

  • Silver comes under fresh selling pressure on Monday and seems vulnerable to sliding further.
  • Failure near the 50% Fibo. and negative oscillators on the daily chart favour bearish traders.
  • A sustained move beyond the $24.00 confluence is needed to negate the negative outlook.

Silver struggles to capitalize on Friday’s goodish rebound from the $23.20 area, or its lowest level since July 12 and attracts fresh sellers on the first day of a new week. The white metal maintains its offered tone through the early European session and is currently trading near the lower end of the daily range, around mid-$23.00s.

From a technical perspective, the recent pullback from the $25.25 area showed resilience below the 61.8% Fibonacci retracement level of the June-July rally and stalled near ascending trend-line support extending from a multi-month low touched in June. The subsequent move-up warrants some caution for bearish traders. That said, the lack of follow-through buying and a failure near the 50% Fibo. level, along with negative oscillators on the daily chart, suggest that the path of least resistance for the XAG/USD is to the downside.

However, it will still be prudent to wait for some follow-through selling below the ascending trend-line support, currently near the $23.20 region, which nears the very important 200-day Simple Moving Average (SMA), before placing fresh bearish bets. The XAG/USD might then turn vulnerable to weaken further below the $23.00 mark, towards retesting the multi-month low, around the $22.15-$22.10 area touched in June. This is closely followed by the $22.00 mark, which if broken decisively will set the stage for deeper near-term losses.

On the flip side, the 50% Fibo. level, around the $23.70 area, now seems to act as an immediate hurdle. Any subsequent move up is likely to attract fresh sellers and remain capped near the $24.00-$24.10 confluence support breakpoint, turned resistance. The said area comprises the 100-day SMA and the 38.2% Fibo. level, which should act as a pivotal point. A sustained strength beyond could lift the XAG/USD back towards the 23.6% Fibo. level, around the $24.45-$24.50 supply zone, en route to the $24.75 hurdle and the $25.00 psychological mark.

Silver daily chart


Technical levels to watch


Today last price23.5
Today Daily Change-0.13
Today Daily Change %-0.55
Today daily open23.63
Daily SMA2024.35
Daily SMA5023.73
Daily SMA10024.05
Daily SMA20023.17
Previous Daily High23.8
Previous Daily Low23.23
Previous Weekly High24.84
Previous Weekly Low23.23
Previous Monthly High25.27
Previous Monthly Low22.52
Daily Fibonacci 38.2%23.58
Daily Fibonacci 61.8%23.44
Daily Pivot Point S123.3
Daily Pivot Point S222.98
Daily Pivot Point S322.73
Daily Pivot Point R123.87
Daily Pivot Point R224.12
Daily Pivot Point R324.44
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