- Silver price meets some selling and erases some of Friday’s strong gains to a two-week high.
- The technical situation supports the possibility of buying at lower levels.
- Sustained weakness below the $22.30 area could pave the way for further intraday losses.
The price of Silver (XAG/USD) starts the week on a weaker note and erodes some of Friday’s strong advance to the $22.80 area, or a two-week high. The white metal maintains its selling tone during the early stages of the European session and currently sits just above $22.50, down more than 0.70% on the day.
From a technical standpoint, Friday’s sustained break through a multi-day trading range and subsequent move above the 38.2% Fibonacci retracement of the August-October dip favors the bulls. Additionally, the daily chart oscillators have just started to gain positive traction and support the prospects for some buying at lower levels near the $22.30 area.
However, some follow-through selling could cause XAG/USD to weaken further below the $22.00 level, towards the 23.6% Fibonacci, around the $21.75 area. If it fails to defend these support levels, the white metal could be dragged towards the intermediate support of $21.35-$21.30, on the way to the round level of $21.00 and the zone of $20.70-$20.65, or the seven-month low that played earlier this month.
On the other hand, the bulls could wait to surpass the $22.80 zone, the 50% Fibonacci, before opening new positions. XAG/USD could then surpass the $23.00 area and continue rising to test the confluence of $23.35, which comprises the important 200-day SMA and 61.8% Fibonacci. A sustained move above that level will set the stage for a new appreciation move.
The subsequent bullish move has the potential to lift $24.30-$24.35.
Daily Silver Price Chart
Additional technical levels
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.
