Silver Price Analysis: XAG/USD could slide back to retest $18.00 pivotal support


  • Silver extends the overnight retracement slide from the $19.00 neighbourhood.
  • The technical setup favours bears and supports prospects for additional losses.
  • A sustained move beyond the $19.00 mark is needed to negate the negative bias.

Silver comes under fresh selling pressure on Wednesday and extends the previous day's modest pullback from the vicinity of the $19.00 mark. The white metal remains on the defensive through the first half of the European session and is currently flirting with the daily low, around mid-$18.00s.

From a technical perspective, the recent bounce from a nearly three-week low touched last Friday faces rejection near the 100-hour EMA. Meanwhile, oscillators on the daily chart are holding in the bearish territory and have again started gaining negative traction on the 1-hour chart. This, in turn, supports prospects for an extension of the intraday depreciating move.

Hence, a subsequent slide back towards challenging a pivotal support, around the $18.00 mark, remains a distinct possibility. Some follow-through selling will be seen as a fresh trigger for bearish traders and drag the XAG/USD back towards the YTD low, around the $17.55 area. Spot prices could eventually drop to the next relevant support near the $17.00 round figure.

On the flip side, the 100-hour SMA, around the $18.90-$19.00 area, might act as an immediate hurdle.  A sustained move beyond might trigger a short-covering rally and lift XAG/USD towards the $19.70-$19.80 supply zone en route to the $20.00 psychological mark. The latter should act as a pivotal point for bulls, which if cleared should pave the way for further gains.

The subsequent move up has the potential to lift the XAG/USD further beyond the $20.50 intermediate resistance, towards reclaiming the $21.00, which coincides with the 200-day EMA.

Silver 1-hour chart

fxsoriginal

Key levels to watch

XAG/USD

Overview
Today last price 18.54
Today Daily Change -0.19
Today Daily Change % -1.01
Today daily open 18.73
 
Trends
Daily SMA20 19.36
Daily SMA50 19.25
Daily SMA100 19.79
Daily SMA200 21.77
 
Levels
Previous Daily High 18.93
Previous Daily Low 18.55
Previous Weekly High 20.19
Previous Weekly Low 18.09
Previous Monthly High 20.02
Previous Monthly Low 17.56
Daily Fibonacci 38.2% 18.78
Daily Fibonacci 61.8% 18.69
Daily Pivot Point S1 18.54
Daily Pivot Point S2 18.36
Daily Pivot Point S3 18.16
Daily Pivot Point R1 18.92
Daily Pivot Point R2 19.12
Daily Pivot Point R3 19.3

 

 

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