Silver Price Analysis: XAG/USD flirts with session lows, around $23.70-65 area
- Silver once again met with some fresh supply in the vicinity of the $24.00 mark.
- The set-up favours bearish traders and supports prospects for further weakness.
- A sustained move beyond the 50% Fibo. is needed to negate the negative bias.
Silver continued with its struggle to move back above the 200-period SMA on the 4-hour chart and witnessed some fresh selling on Thursday. The commodity maintained its offered tone through the mid-European session and was last seen trading near daily lows, around the $23.65 region.
From a technical perspective, the recent goodish rebound from YTD lows, so far, remained capped near the $23.95-$24.00 region. This is closely followed by the 50% Fibonacci level of the $26.00-$22.17 decline, around the $24.10-15 region, which should now act as a pivotal point for traders.
Meanwhile, technical indicators on the daily chart maintained their bearish bias. Adding to this, oscillators on the 1-hour chart have been gaining negative traction and support prospects for an extension of the intraday downward trajectory amid a goodish pickup in the US dollar demand.
That said, any subsequent fall is likely to find decent support near the $23.45-40 region, coinciding with the 38.2% Fibo. level. Sustained weakness below might prompt some technical selling and turn the XAG/USD vulnerable to accelerate the fall further towards the $23.00 round-figure mark.
Some follow-through selling will set the stage for a slide back towards intermediate support near mid-$22.00s. The XAG/USD might eventually drop to challenge YTD lows, around the $22.20-15 region touched earlier this month.
On the flip side, sustained move beyond the $24.10-15 region (50% Fibo. level) has the potential to lift the XAG/USD further towards the 61.8% Fibo. level, around the $24.55-60 area. The momentum could further get extended and allow bulls to aim back to reclaim the key $25.00 psychological mark.
Silver 4-hour chart
Technical levels to watch