Silver Price Analysis: XAG/USD struggles near-six month low, at around $20.60, amid bearish bias


  • XAG/USD hovers around $20.85, attempting to stabilize after a significant drop from $23.30, marking a precarious position near a six-month low.
  • Silver could extend its losses if it fails to conquer $21.69.
  • Short-term consolidation between $20.69 and $21.00 offers a tight trading range, with potential upside resistance at $21.28 and downside support near $20.50.

Silver price (XAG/USD) remained heavy on Wednesday after last week’s more than 6% losses, which witnessed the white metal traveling from around $ 23.30, to a new six-month low of $20.69. However, a downtick in US Treasury bond yields saw XAG/USD trimming some of its losses, exchanging hands at $20.85, down 1.55%.

From a daily chart perspective, the XAG/USD is set to extend its losses, also exacerbated by the break of a ten-month-old upslope support trendline at around $21.65, which opened the door for a fall toward $20.69. If XAG/USD remains below $21.00, that could put into play a re-test of the daily low of $20.69, followed by a drop to the year-to-date (YTD) low of $19.92. Conversely, if Silver's price, climbs past $21.65, the $22.00 figure would be up for grabs.

Short-term, the XAG/USD is consolidating at around the $20.69 - $21.00 area, as seen by the contraction of the Bollinger bands, while price action remains capped on the upside by the 20-day Exponential Moving Average (EMA), and the bottom band on the downside. If Silver buyers lift prices past $21.00, the next stop would be the upper band at $21.28, followed by the October 3 high at $21.39. Conversely if the non-yielding metal drops below $20.69, immediate support would be in the $20.50 area.

XAG/USD Price Action – Hourly chart

XAG/USD Key Technical Levels

XAG/USD

Overview
Today last price 20.86
Today Daily Change -0.30
Today Daily Change % -1.42
Today daily open 21.16
 
Trends
Daily SMA20 22.8
Daily SMA50 23.31
Daily SMA100 23.46
Daily SMA200 23.43
 
Levels
Previous Daily High 21.39
Previous Daily Low 20.68
Previous Weekly High 23.65
Previous Weekly Low 22.12
Previous Monthly High 24.82
Previous Monthly Low 22.12
Daily Fibonacci 38.2% 21.12
Daily Fibonacci 61.8% 20.96
Daily Pivot Point S1 20.76
Daily Pivot Point S2 20.37
Daily Pivot Point S3 20.06
Daily Pivot Point R1 21.47
Daily Pivot Point R2 21.79
Daily Pivot Point R3 22.18

 

 

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