Silver Price Analysis: Chance to break below $20.00, vulnerable near 50 DMA

• Silver loses ground for the second day in a row and falls to a one-week low.
• The drop marks a bearish break below a one-week trading range.
• The bears still have to wait for a sustained break below $20.00 before making further bets.

the silver witnesses selling for the second day in a row on Tuesday and falls above a one-week low around the psychological $20.00 level during the mid-European session.

The decline follows last week’s failure near the 61.8% Fibonacci level of the $22.52 drop to $18.15 and marks a bearish break below a one-week trading range. Furthermore, the acceptance below the 50% Fibonacci level and the 50-day SMA supports the prospects for a further downside move for XAG/USD.

That said, the oscillators on the daily chart – although they have been losing traction – still do not confirm the negative outlook. This makes it prudent to wait for sustained weakness below $20.00 before making further bearish bets and positioning for a subsequent drop below the 38.2% Fibonacci level, around the $19.80 region.

The next relevant support lies near the $19.55 area (last week’s low), which should now act as a key point. A convincing break below would change the bias in favor of bearish traders and expose the 23.6% Fibonacci level, around the $19.20-$19.15 region. XAG/USD could drop to $19.00.

On the other hand, the level of Fibo. 50% around the $20.35 area now seems to act as strong immediate resistance. Any subsequent move to the upside could attract fresh selling near the $20.65 horizontal zone. This, in turn, should keep a cap on any further gains for XAG/USD near the 61.8% Fibonacci level, around the $20.85 region.

Silver Daily Chart

Key technical levels