- Silver fails again near the $19.50 area and moves lower on Thursday.
- The formation of a rectangle could be classified as a bearish consolidation phase.
- The oversold of the RSI on the daily chart warrants caution before opening new bearish positions.
Silver has struggled to build on the previous day’s positive move from near a two-year low and attracted fresh selling near the $19.45-$19.50 area. The intraday drop extended throughout the first half of the European session and dragged spot prices below the $19.00 level.
Generally speaking, the recent movement of prices in a range during the last week and a half constitutes the formation of a rectangle. This points to indecision on the next directional move for XAG/USD and warrants caution before opening new directional positions.
Considering the recent decline from $22.50, or the June monthly high, the rectangle could be classified as a bearish consolidation phase and supports the prospects for an extension of the downside move in the near term. That said, the oversold RSI on the daily chart could keep the bears on the sidelines.
However, acceptance below the $19.00 level validates the negative outlook. Follow-up selling below the $18.75 area, or a two-year low, would make XAG/USD vulnerable to accelerate the bearish path towards $18.00 en route to the $17.65 support zone.
On the other hand, the upper limit of the aforementioned range, around the $19.50-$19.55 area, could continue to act as a strong immediate headwind. Any subsequent move higher is more likely to be met with fresh selling and a run down just before the psychological level of $20.00.
That said, a sustained move above this latest level could trigger a short-covering move and allow XAG/USD to break above an intermediate barrier near the $20.60-$20.65 zone, which coincides with the 100-period SMA. on the 4 hour chart. The recovery could extend towards the $21.00 level.
Silver 4 hour chart
silver key levels
XAG/USD
Overview | |
---|---|
last price today | 18.91 |
daily change today | -0.31 |
Today Daily change % | -1.61 |
Daily opening today | 19.22 |
Trends | |
---|---|
daily SMA20 | 20.37 |
daily SMA50 | 21.21 |
daily SMA100 | 22.99 |
SMA200 Journal | 23.16 |
levels | |
---|---|
Previous daily high | 19.41 |
Previous Daily Low | 18.86 |
Previous Weekly High | 20.2 |
Previous Weekly Low | 18.92 |
Previous Monthly High | 22.52 |
Previous Monthly Low | 20.22 |
Daily Fibonacci of 38.2% | 19.2 |
Daily Fibonacci of 61.8% | 19.07 |
Daily Pivot Point S1 | 18.92 |
Daily Pivot Point S2 | 18.61 |
Daily Pivot Point S3 | 18.37 |
Daily Pivot Point R1 | 19.46 |
Daily Pivot Point R2 | 19.71 |
Daily Pivot Point R3 | 20.01 |
Source: Fx Street

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