- Silver witnessed fresh selling on Wednesday and drifted back closer to YTD lows.
- The set-up favours bearish traders and supports prospects for additional losses.
- Bears might wait for a break below the $22.00 mark before placing fresh bets.
Silver struggled to capitalize on the overnight bounce from the vicinity of YTD lows, instead met with some fresh supply on Wednesday. The commodity remained depressed heading into the North American session and was last seen trading around the $22.25-20 region, down nearly 1% for the day.
Looking at the technical picture, attempted recoveries have repeated failed near the downward sloping 50-period SMA resistance on the 4-hour chart. However, the XAG/USD, so far, has shown some resilience near the $22.00 round figure, which should now act as a key pivotal point for traders.
Meanwhile, technical indicators on the daily chart are holding deep in the bearish territory and are still far from being in the oversold zone. This, in turn, supports prospects for an eventual break below the $22.00 handle and an extension of over three-week-old downward trajectory.
The XAG/USD might then accelerate the slide towards challenging September 2020 swing lows support, around the $21.65 region, before dropping to the $21.00 round-figure mark.
On the flip side, the 50-period SMA on the 4-hour chart, currently around mid-$22.00s might continue to act as a strong resistance. This is followed by the $22.80 supply zone, above which the XAG/USD could surpass the $23.00 mark and test the next relevant hurdle near the $23.15 area.
Silver 4-hour chart
Technical levels to watch
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.
Recommended content
Editors’ Picks
AUD/USD faces potential extra gains near term
Further weakness in the US Dollar allowed AUD/USD to rapidly forget Friday’s pullback and resume the uptrend well north of 0.6700 the figure amidst quite an auspicious start to the new trading week.
EUR/USD now retargets the 1.1150 region
EUR/USD managed to regain upside impulse and break above the 1.1100 barrier to print new multi-day peaks on the back of increasing downward pressure in the Greenback ahead of the key FOMC meeting.
Gold consolidates gains near fresh all-time highs
Gold trades in a narrow range above $2,580 after touching a new record-high near $2,590 earlier in the day. The benchmark 10-year US Treasury bond yield holds above 3.6% ahead of the Fed meeting and makes it difficult for XAU/USD to find direction.
Ripple joins hands with Hedera and Aptos Labs to launch MiCA Crypto Alliance
Ripple (XRP) made a key announcement alongside other founding members of a crypto alliance. The DLT Science Foundation is behind the effort, Ripple partnered with Hedera and Aptos Labs.
Five Fundamentals for the week: Fed overtowers pivotal week for Gold, stocks and the US Dollar Premium
The Fed's first rate cut stands out as economic uncertainty mounts. US Retail Sales and Jobless Claims are of high interest. Rate decisions by central banks in the UK and Japan are also pivotal.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.