- The silver price continues to come under strong selling pressure for the fifth day in a row on Tuesday.
- A sustained break below the 200 SMA on the 4-hour chart favors the bears.
- The oversold RSI on the hourly chart advises waiting for a consolidation.
The price of Silver (XAG/USD) extends last week’s rejection slide from the psychological level of $25.00, or one-month highs, and continues to lose ground for the fifth day in a row on Tuesday. The fall remains uninterrupted during the first hours of the European session and drags the white metal to a minimum in two weeks, around the area of $23.65 in the last hour.
From a technical point of view, the sustained break and acceptance below the $23.80-$23.75 zone, which represents the 200 simple moving average (SMA) on the 4-hour chart, could be considered a new trigger for the bassists. On the other hand, the oscillators on the daily chart have begun to gain negative traction and support the prospects of a further depreciation movement in the short term. That being said, the RSI on the hourly chart is showing oversold conditions and could help XAG/USD to consolidate near current levels, which represent the 50% Fibonacci retracement of the 22.25 rally move. $ to $25.00.
However, a convincing break below this level will make silver vulnerable to accelerate the decline towards the 61.8% Fibonacci around the $23.30-$23.25 region, en route to the round $23.00 level. $. The downtrend could extend further and drag XAG/USD below the $22.65-$22.60 zone, challenging strong horizontal support near the $22.20-$22.10 zone.
On the other hand, the breakout of the 200 period SMA, around the $23.75-$23.80 area, now seems to act as an immediate barrier ahead of the $24.00 level. The latter represents 38.2% Fibonacci, above which a short covering move could lift XAG/USD towards 23.6% Fibonacci, around the $24.30-$24.35 zone. Some continuation buying could expose four-month downtrend line resistance, currently near the $24.70-$24.75 zone. A sustained breakout, leading to further strengthening above the $25.00 level, could shift the bias in favor of the bulls.
Silver 4 hour chart
Silver 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.
