#XAGUSD @ 23.899 Silver drops to a multi-week low, though finds some support near the 38.2% Fibo. level. (Pivot Orderbook analysis)
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- Silver drops to a multi-week low, though finds some support near the 38.2% Fibo. level.
- The technical setup favours bearish traders and supports prospects for deeper losses.
- A sustained strength beyond the $24.20-30 area is needed to negate the negative bias.
The pair currently trades last at 23.899.
The previous day high was 24.21 while the previous day low was 23.88. The daily 38.2% Fib levels comes at 24.08, expected to provide resistance. Similarly, the daily 61.8% fib level is at 24.01, expected to provide resistance.
Silver comes under some renewed selling pressure following the previous day’s modest uptick and drops to its lowest level since April 3 during the first half of trading on Tuesday. The white metal, however, finds some support near the 38.2% Fibonacci retracement level of the March-May rise and trades just below the $24.00 mark during the early European session, still down 0.80% for the day.
From a technical perspective, the two-way price move witnessed over the past three days constitutes the formation of a rectangle on hourly charts. Against the backdrop of the recent sharp pullback from over a one-year top, this might still be categorized as a bearish consolidation phase. Moreover, oscillators on hourly/daily charts are holding deep in the negative territory and support prospects for further losses.
That said, it will still be prudent to wait for a sustained break below the $23.70-$23.65 area (38.2% Fibo.) before positioning for an extension of over a one-week-old downtrend. The XAG/USD might then test the $23.40 strong horizontal support, which coincides with the 100-day Simple Moving Average (SMA). The latter should act as a pivotal point to determine the near-term trajectory.
The subsequent downfall could drag the XAG/USD towards 50% Fibo. level, around the $23.00 round-figure mark. The next relevant support is pegged near the $22.65-$22.60 region ahead of the $22.30-$22.25 zone, or the 61.8% Fibo. level. A convincing break below the latter will be seen as a fresh trigger for bearish traders and pave the way for a further depreciating move.
On the flip side, the top end of a short-term trading range, around the $24.15-$24.20 region, could act as an immediate hurdle. A sustained strength beyond might trigger a short-covering rally and lift the XAG/USD towards the 23.6% Fibo. level, around the $24.60 zone. Some follow-through buying should allow bulls to reclaim the $25.00 psychological mark and aim to test the next resistance near the $25.30-$25.40 supply zone.
Technical Levels: Supports and Resistances
XAGUSD currently trading at 23.9 at the time of writing. Pair opened at 24.09 and is trading with a change of -0.79 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 23.90 |
| 1 | Today Daily Change | -0.19 |
| 2 | Today Daily Change % | -0.79 |
| 3 | Today daily open | 24.09 |
The pair is trading below its 20 Daily moving average @ 25.12, below its 50 Daily moving average @ 23.93 , above its 100 Daily moving average @ 23.39 and above its 200 Daily moving average @ 21.87
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 25.12 |
| 1 | Daily SMA50 | 23.93 |
| 2 | Daily SMA100 | 23.39 |
| 3 | Daily SMA200 | 21.87 |
The previous day high was 24.21 while the previous day low was 23.88. The daily 38.2% Fib levels comes at 24.08, expected to provide resistance. Similarly, the daily 61.8% fib level is at 24.01, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 23.91, 23.73, 23.58
- Pivot resistance is noted at 24.24, 24.39, 24.57
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 24.21 |
| Previous Daily Low | 23.88 |
| Previous Weekly High | 25.92 |
| Previous Weekly Low | 23.74 |
| Previous Monthly High | 26.09 |
| Previous Monthly Low | 23.57 |
| Daily Fibonacci 38.2% | 24.08 |
| Daily Fibonacci 61.8% | 24.01 |
| Daily Pivot Point S1 | 23.91 |
| Daily Pivot Point S2 | 23.73 |
| Daily Pivot Point S3 | 23.58 |
| Daily Pivot Point R1 | 24.24 |
| Daily Pivot Point R2 | 24.39 |
| Daily Pivot Point R3 | 24.57 |
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