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Silver Price Analysis: XAG/USD bears in control below $19.00

  • Silver remains on the defensive, near one-month lows hit on Monday.
  • The situation favors bearish traders and supports the prospect of further losses.
  • Any recovery attempts above the $19.00 mark are likely to run out.

the silver it struggles to gain traction on Tuesday and is holding close to a one-month low hit the day before. The white metal is currently trading around $18.70 and looks vulnerable to continuing its recent downtrend seen over the last two weeks or so.

Considering last week’s failure near the 200-period SMA on the 4hr chart, acceptance below the $19.00 mark adds credence to the short-term bearish outlook for XAG/USD. Furthermore, the technical indicators on the daily chart remain in the negative territory and are still far from being in the oversold zone.

Therefore, a subsequent drop to retest the low of the year, around the $18.20-$15 zone touched on July 14, looks like a distinct possibility. This zone is closely followed by the $18.00 level, which if broken decisively will be seen as a new trigger for the bears and will lay the groundwork for a further downside move.

On the other hand, any recovery attempt is more likely to face stiff resistance and attract new sellers near the $19.00 mark. This should cap XAG/USD close to the 200-period SMA on the 4-hour chart. The said barrier is currently pegged near the $19.45-$19.50 region, which should now act as a pivot point.

If the strength holds beyond that, the short-term negative bias will be nullified and a short-covering move will ensue. XAG/USD could then aim to clear an intermediate hurdle near the $19.80 region and aim to reclaim the psychological $20.00 level.

Silver 4 hour chart

Technical levels

XAG/USD

Panorama
Last Price Today 18.68
Today’s Daily Change -0.09
Today’s Daily Change % -0.48
Today’s Daily Opening 18.77
Trends
20 Daily SMA 19.8
50 Daily SMA 19.72
100 Daily SMA 21.16
200 Daily SMA 22.42
levels
Previous Daily High 18.92
Previous Daily Minimum 18.52
Previous Maximum Weekly 19.43
Previous Weekly Minimum 18.72
Monthly Prior Maximum 20.37
Previous Monthly Minimum 18.15
Daily Fibonacci 38.2% 18.67
Daily Fibonacci 61.8% 18.76
Daily Pivot Point S1 18.56
Daily Pivot Point S2 18.34
Daily Pivot Point S3 18.16
Daily Pivot Point R1 18.95
Daily Pivot Point R2 19.13
Daily Pivot Point R3 19.35

Source: Fx Street

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