XAGUSD @ 4.05 – Support/Resistance analysis: Silver Price Analysis: seems vulnerable below 50 DMA, hangs near 38.2% Fibo.

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XAGUSD @ 4.05 – Support/Resistance analysis: Silver Price Analysis: seems vulnerable below 50 DMA, hangs near 38.2% Fibo.

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• Silver witnesses some selling for the third successive day on Wednesday.
• Acceptance below the 50 DMA supports prospects for additional losses.
• Any attempted recovery move might now be seen as a selling opportunity.

The pair currently trades last at 4.05.

The previous day high was 20.31 while the previous day low was 19.91. The daily 38.2% Fib levels comes at 20.06, expected to provide resistance. Similarly, the daily 61.8% fib level is at 20.16, expected to provide resistance.

Silver struggles to capitalize on the previous day’s late rebound and meets with a fresh supply near the $20.25-$20.30 region on Wednesday. The white metal remains depressed for the third straight day and slips back below the $20.00 psychological mark during the first half of the European session.

The XAG/USD is currently hovering around over a one-week low touched on Tuesday and now seems to have found acceptance below the 50-day SMA. Bulls now look to the 38.2% Fibonacci retracement level of the $22.52-$18.15 downfall, near the $19.80 region, to offer some support. A convincing break below would expose the next relevant support near the $19.55 area (last week’s swing low).

The latter should now act as a key pivotal point, which if broken decisively would be seen as a fresh trigger for bearish traders and make the XAG/USD vulnerable. Spot prices could then accelerate the fall towards the 23.6% Fibo. level, around the $19.20-$19.15 region, en route to the $19.00 mark. The downward trajectory could further get extended towards the $18.45-$18.40 area.

On the flip side, the 50% Fibo. level, around the $20.35 region, now becomes an immediate strong hurdle. Any subsequent move up could be seen as a selling opportunity near the $20.65 horizontal zone and remain capped near the 61.8% Fibo. level, around the $20.85 region. That said, some follow-through buying beyond the $21.00 mark could negate the negative outlook for the XAG/USD.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 19.94 at the time of writing. Pair opened at 20.14 and is trading with a change of -0.99 % .

The pair is trading above its 20 Daily moving average @ 19.82, below its 50 Daily moving average @ 20.16 , below its 100 Daily moving average @ 21.65 and below its 200 Daily moving average @ 22.68

The previous day high was 20.31 while the previous day low was 19.91. The daily 38.2% Fib levels comes at 20.06, expected to provide resistance. Similarly, the daily 61.8% fib level is at 20.16, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 19.93, 19.73, 19.54
• Pivot resistance is noted at 20.33, 20.51, 20.72

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