- Silver is struggling to capitalize on its modest intraday gains to the $22.00 area.
- The recent breakdown of key technical levels supports the prospects for further losses.
- A sustained move above the $22.55-$22.60 zone is needed to invalidate the bearish outlook.
the silver It builds on Friday’s modest bounce from the $21.20-$21.15 zone, or its lowest since Nov. 29, and attracts some buyers on the first day of a new week. However, the intraday rally lacks bullish conviction and fails just before $22.00.
From a technical perspective, this zone represents the breakout point of the support of the 100-day simple moving average (SMA). This is followed by the 38.2% fibonacci retracement level of the recent rally from October 2022, around $22.15. Any further move higher is more likely to be met with a new bid and remain capped near the $22.55-$22.60 resistance zone.
The latter should act as a pivot point, which if decisively exceeded will negate any short-term bearish bias. The ensuing move higher has the potential to push XAG/USD towards $24.00 en route to the $24.50 bid zone. Follow-on buying will tip the balance back in favor of the bulls and pave the way for further gains.
On the other hand, the 50% Fibonacci level, around the $21.35 zone, seems to protect the immediate fall. Friday’s swing low to follow, around the $21.20-$20.15 area, near the 50% Fibonacci level. A convincing break below the latter will be seen as a new trigger for bears and make XAG/USD vulnerable to further weakening below $21.00.
Taking into account that the technical indicators on the daily chart remain in negative territory, the white metal could fall as low as 61.8% Fibonacci, around the $20.60 area. The bearish trajectory could extend further to challenge the key psychological $20.00 level en route to the next relevant support near the $19.75-$19.70 horizontal zone.
silver daily chart
Key levels to watch
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
