Silver has been consistently low for the fourth day in a row and is currently hovering close to its lowest point in three months, showing no signs of improvement. #XAGUSD @ 22.556

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• Silver remains depressed for the fourth straight day and languishes near a three-month low.

The pair currently trades last at 22.556.

The previous day high was 23.18 while the previous day low was 22.5. The daily 38.2% Fib levels comes at 22.76, expected to provide resistance. Similarly, the daily 61.8% fib level is at 22.92, expected to provide resistance.

Silver enters a bearish consolidation phase on Thursday and oscillates in a narrow trading band around the $22.50-$22.60 area or a three-month low touched the previous day. The white metal, however, manages to hold its neck just above the very important 200-day Simple Moving Average (SMA) support, which should act as a key pivotal point for short-term traders.

Against the backdrop of the recent failure near the 50-day SMA, bearish oscillators on the daily chart support prospects for an eventual breakdown through the technically significant moving average. Some follow-through selling below the $22.25 area, representing the 61.8% Fibonacci retracement level of the March-May rally, will be seen as a fresh trigger for bearish traders and pave the way for further losses.

The XAG/USD might then turn vulnerable to weaken further below the $22.00 mark and accelerate the downfall towards testing the $21.70-$21.65 support zone. The downward trajectory could get extended towards the $21.25 intermediate support en route to the $21.00 round figure and the next relevant support near the $20.50 area. Bears might eventually target the YTD low, levels just below the $20.00 psychological mark.

On the flip side, any meaningful recovery attempt might now confront stiff resistance near the $23.00 mark, which coincides with the 50% Fibo. level. That said, a sustained strength beyond could trigger a short-covering rally and lift the XAG/USD to the $23.30-$23.35 intermediate hurdle en route to 38.2% Fibo. level, around the $23.70-$23.75 zone. The latter should act as a key barrier and cap any further gains.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 22.54 at the time of writing. Pair opened at 22.66 and is trading with a change of -0.53 % .

The pair is trading below its 20 Daily moving average @ 23.61, below its 50 Daily moving average @ 24.32 , below its 100 Daily moving average @ 23.35 and above its 200 Daily moving average @ 22.46

The previous day high was 23.18 while the previous day low was 22.5. The daily 38.2% Fib levels comes at 22.76, expected to provide resistance. Similarly, the daily 61.8% fib level is at 22.92, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 22.38, 22.1, 21.7
• Pivot resistance is noted at 23.06, 23.46, 23.75

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