#XAGUSD @ 20.732 Silver price prolongs its losses to four consecutive days after slumping below the 200-DMA. (Pivot Orderbook analysis)

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• Silver price prolongs its losses to four consecutive days after slumping below the 200-DMA.
• Silver Price Analysis: A bearish continuation is likely, even though RSI is oversold; caution is warranted.

The pair currently trades last at 20.732.

The previous day high was 21.4 while the previous day low was 20.74. The daily 38.2% Fib levels comes at 20.99, expected to provide resistance. Similarly, the daily 61.8% fib level is at 21.15, expected to provide resistance.

Silver price dropped to a fresh YTD low of $20.58 a troy ounce but has trimmed some of its losses. Even though the US Dollar (USD) remains soft and the US bond yields are down, the white metal is losing 0.14%. At the time of writing, the XAG/USD exchanges hands at $20.72.

From a daily chart perspective, the XAG/USD is downward biased. Furthermore, the 20-day Exponential Moving Average (EMA) is about to cross below the 200-day EMA, triggering a death cross and exacerbating a fall toward the next demand area, the November 3 daily low of $18.84. A breach of the latter would open the door for further downside, exposing crucial support zones. The critical support areas exposed would be October’s 14 low of $18.09, followed by September’s 28 at 17.97, ahead of last year’s low at $17.56.

Even though the path of least resistance is downwards, the Relative Strength Index (RSI) at oversold conditions could trigger consolidation before the bearish continuation.

As an alternate scenario, the XAG/USD first resistance would be the psychological $21.00 figure. Once reclaimed, bulls could drive prices towards the February 24 high at $21.39, followed by February 23 daily high at 21.67. Next, the 20/200-day EMAs intersection would be tested, around $21.90s.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 20.67 at the time of writing. Pair opened at 20.76 and is trading with a change of -0.43 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 22.2, 50 SMA 23.14, 100 SMA @ 22.02 and 200 SMA @ 21.01.

The previous day high was 21.4 while the previous day low was 20.74. The daily 38.2% Fib levels comes at 20.99, expected to provide resistance. Similarly, the daily 61.8% fib level is at 21.15, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 20.53, 20.31, 19.87
• Pivot resistance is noted at 21.2, 21.63, 21.86

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