#XAGUSD @ 18.580 -imp levels: Silver drifts lower for the second straight day and dives to over a one-month low.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE and login below to read further [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• Silver drifts lower for the second straight day and dives to over a one-month low.
• The technical set-up supports prospects for a further near-term depreciating move.
• A slightly oversold RSI on hourly charts warrants some caution for bearish traders.

The pair currently trades last at 18.580.

The previous day high was 19.43 while the previous day low was 18.82. The daily 38.2% Fib levels comes at 19.06, expected to provide resistance. Similarly, the daily 61.8% fib level is at 19.2, expected to provide resistance.

Silver continues losing ground for the second successive day on Monday and drops to over a one-month low during the early European session. The white metal is currently trading around mid-$18.00s, down over 1.80% for the day and seems vulnerable to sliding further.

The XAG/USD faced rejection near the 200-hour SMA on Friday. Furthermore, acceptance below the $19.00 round-figure mark and a subsequent break through the previous monthly low, around the $18.70 region, could be seen as a fresh trigger for bearish traders.

The negative outlook is reinforced by the fact that technical indicators on the daily chart are holding deep in bearish territory. That said, RSI (14) on hourly charts is flashing oversold conditions and warrants some caution for aggressive traders.

Nevertheless, the technical set-up supports prospects for an extension of the depreciating move towards the YTD low, around the $18.15 area touched in July. This is closely followed by the $18.00 mark, which if broken will set the stage for additional losses.

On the flip side, any attempted recovery move now seems to confront resistance and attract some sellers near the $18.70 support breakpoint. This, in turn, should keep a lid on any further gains for the XAG/USD near the $19.00 round-figure mark.

The latter should act as a pivotal point, above which the XAG/USD could climb back to the 200-hour SMA hurdle, currently near the $19.30 zone. Some follow-through buying will negate the bearish outlook and trigger a fresh bout of a short-covering move.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 18.58 at the time of writing. Pair opened at 18.91 and is trading with a change of -1.75 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 19.88, 50 SMA 19.77, 100 SMA @ 21.22 and 200 SMA @ 22.45.

The previous day high was 19.43 while the previous day low was 18.82. The daily 38.2% Fib levels comes at 19.06, expected to provide resistance. Similarly, the daily 61.8% fib level is at 19.2, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 18.68, 18.45, 18.08
• Pivot resistance is noted at 19.29, 19.66, 19.89

[/s2If]
Join Our Telegram Group