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Silver Price Analysis: XAG/USD rebounds from one-week low, bearish potential appears intact

  • The price of Silver falls to lows in more than a week on Wednesday, although it finds some support at lower levels.
  • The technical situation continues to favor the bears and supports the prospects of a new decline.
  • The stage seems set to retest the support of an ascending trend line, near the $22.35 area.

The price of Silver (XAG/USD) falls for the third consecutive day and registers lows around $22.65 during the first hours of the European session on Wednesday. The white metal, however, manages to recover a little in the last hour and is currently trading around the $2.80-$22.75 zone, with a drop of around 0.30% on the day.

From a technical point of view, the previous day’s sustained breakout and close below the round $23.00 level was considered a new trigger for the bears. Furthermore, the oscillators on the daily chart have once again gained negative traction and support the prospects of a further depreciating move for XAG/USD. Therefore, a subsequent pullback towards challenging an ascending trend line extending from the June monthly low, currently around the $22.35 area, seems a clear possibility.

A convincing break below this last level would confirm a new breakout and expose the next relevant support, near $22.00. Continued sales would set the stage for further losses. XAG/USD could then accelerate the bearish trajectory towards the intermediate support at $21.25 before finally falling to the round $21.00 level.

On the other hand, the $23.00 level could now act as an immediate hurdle ahead of the $23.20-$23.25 area and the important 200-day SMA, currently around the $23.45 region. Below is last week’s high, around $23.75. Sustained strength above that region has the potential to lift of $25.00.

Daily Silver Price Chart

fxsoriginal

Silver additional technical levels

XAG/USD

Overview
Latest price today 22.78
Today Daily variation -0.08
Today’s daily variation -0.35
Today’s daily opening 22.86
Trends
daily SMA20 23.36
daily SMA50 23.59
SMA100 daily 23.57
SMA200 daily 23.47
Levels
Previous daily high 23.14
Previous daily low 22.85
Previous weekly high 23.78
Previous weekly low 22.81
Previous Monthly High 25.02
Previous monthly low 22.23
Daily Fibonacci 38.2 22.96
Fibonacci 61.8% daily 23.03
Daily Pivot Point S1 22.76
Daily Pivot Point S2 22.66
Daily Pivot Point S3 22.47
Daily Pivot Point R1 23.05
Daily Pivot Point R2 23.24
Daily Pivot Point R3 23.34

Source: Fx Street

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