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Silver Price Analysis: XAG/USD rises back above $23.00, upside potential appears limited

  • The price of Silver gains positive traction and breaks an eight-day streak of losses to two-week lows.
  • The technical situation favors the appearance of new sales at higher levels.
  • Bears could wait for a drop below the $22.85-$22.80 area before positioning for a further decline.

The price of Silver (XAG/USD) attracts some buyers on the first day of a new week, breaking an eight-day losing streak, and rises back above the $23.00 level at the start of the European session. However, the white metal remains very close to a two-and-a-half-week low around the $22.85-$22.80 area, which was retested on Friday, and still appears vulnerable to a further decline.

The negative outlook is reinforced by the fact that the oscillators on the daily chart have been gaining negative traction and are far from being in the oversold zone. Furthermore, the Relative Strength Index (RSI) on the 4-hour chart has also recovered from oversold. This, in turn, suggests that the path of least resistance for XAG/USD remains to the downside.

Therefore, any subsequent move higher could still be seen as a selling opportunity and remain capped near the very important 200-day SMA, currently fixed near the $23.45-$23.50 zone. It is followed by the 100-day SMA barrier, around the $23.80 area, and the $24.00 level, which if broken decisively will nullify the negative outlook for XAG/USD.

Further, possible short covering has the potential to lift the white metal above the $24.30-$24.35 zone, towards recovering the psychological level of $25.00. This level represents the August high and should act as a key point. Sustained strength above this point will be considered a new trigger for the bulls and will pave the way for a fresh appreciation move.

On the contrary, bears will have to wait for sales below the $22.85-$22.80 area before opening new positions. Then, XAG/USD could accelerate the decline below the $22.65-$22.60 support, towards challenging strong horizontal support near the $22.20-$22.10 zone. Next, the $22.00 level would confirm a new breakout.

Daily Silver Price Chart


Silver additional technical levels


Latest price today 23.04
Daily change today 0.11
Today’s daily variation 0.48
Today’s daily opening 22.93
daily SMA20 23.56
daily SMA50 23.74
SMA100 daily 23.84
SMA200 daily 23.47
Previous daily high 23.18
Previous daily low 22.86
Previous weekly high 24.3
Previous weekly low 22.83
Previous Monthly High 25.02
Previous monthly low 22.23
Daily Fibonacci 38.2 22.98
Fibonacci 61.8% daily 23.05
Daily Pivot Point S1 22.8
Daily Pivot Point S2 22.67
Daily Pivot Point S3 22.48
Daily Pivot Point R1 23.12
Daily Pivot Point R2 23.3
Daily Pivot Point R3 23.44

Source: Fx Street

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