- Silver continues to lose ground on Friday and falls to a two-year low below the $20.00 level.
- The move down confirms a new bearish breakout of an uptrend channel.
- Oversold technical oscillators warrant some caution for bears before positioning for further losses.
Silver continues to come under intense selling pressure on the last day of the week and weakens further below the psychological $20.00 level during the early part of the European session. The bearish move dragged spot prices to the lowest level since July 2020, around the $19.85 zone in the last hour.
With the latest move lower, XAG/USD appears to have confirmed a fresh breakout of a month-old downtrend channel and looks vulnerable to extending negative momentum. That said, the oscillators on the hourly/daily charts are showing oversold conditions and warrant some caution for bearish traders.
Therefore, it is prudent to wait for a short-term consolidation or a modest rebound before positioning yourself for another move lower. Nonetheless, the technical setup supports the prospects for an extension of the downtrend and a drop to the next relevant support near the $19.60-$19.55 area.
On the other hand, any recovery attempt above the $20.00 level would attract fresh selling and be capped near the support breakout point of the uptrend channel around the $20.25 region. This last level should act as a key point that, if breached, could trigger a short-term covering move.
XAG/USD could then accelerate the momentum towards an intermediate hurdle near the $20.45-$20.50 zone heading towards the $21.00 level.
Silver 4 hour chart
silver key levels
|last price today||19.86|
|daily change today||-0.41|
|daily change today||-2.02|
|Daily opening today||20.27|
|Previous daily high||20.82|
|Previous Daily Low||20.22|
|Previous Weekly High||21.94|
|Previous Weekly Low||20.62|
|Previous Monthly High||22.52|
|Previous Monthly Low||20.22|
|Daily Fibonacci of 38.2%||20.45|
|Daily Fibonacci of 61.8%||20.59|
|Daily Pivot Point S1||20.05|
|Daily Pivot Point S2||19.83|
|Daily Pivot Point S3||19.44|
|Daily Pivot Point R1||20.66|
|Daily Pivot Point R2||21.04|
|Daily Pivot Point R3||21.26|
Source: Fx Street