- On Wednesday, silver saw some selling for the third day in a row.
- Acceptance below the 50 DMA supports the prospect of further losses.
- Any recovery attempt could now be seen as a selling opportunity.
the silver struggles to take advantage of the late bounce from the previous day and finds fresh offers near the $20.25-$20.30 zone on Wednesday. The white metal remains depressed for the third day in a row and falls back below the key psychological level of $20.00 during the first half of the European session.
XAG/USD is currently hovering around the one-week low hit on Tuesday. He found and was rejected by the 200-week SMA resistance above $20.50 and now also appears to have found acceptance below the 50-week SMA at $20.11, both bearish flagships. The bulls are now looking for the 38.2% Fibonacci level of the $22.52 drop to $18.15 at the $19.80 zone to offer some support. A convincing break below would expose the next relevant support near the $19.55 area (last week’s low).
The latter should now act as a key pivot point, which if broken decisively would be seen as a new trigger for the bears and make XAG/USD vulnerable. Spot prices could then accelerate to the 23.6% Fibonacci level, around the $19.20-$19.15 region, on the way to the $19.00 mark. The bearish trajectory could extend further towards the $18.45-$18.40 zone.
On the other hand, the 50% Fibonacci level around the $20.35 zone now becomes a strong immediate hurdle. Any further move to the upside could be seen as a selling opportunity near the $20.65 horizontal and would still be capped near the 61.8% Fibonacci level around the $20.85 region. That said, some follow-up buying beyond $21.00 could negate the negative outlook for XAG/USD.
XAG daily chart
|Last Price Today||19.85|
|Today’s Daily Change||-0.29|
|Today’s Daily Change %||-1.44|
|Today’s Daily Opening||20.14|
|20 Daily SMA||19.82|
|50 Daily SMA||20.16|
|100 Daily SMA||21.65|
|200 Daily SMA||22.68|
|Previous Daily High||20.31|
|Previous Daily Minimum||19.91|
|Previous Maximum Weekly||20.84|
|Previous Weekly Minimum||19.8|
|Monthly Prior Maximum||20.37|
|Previous Monthly Minimum||18.15|
|Daily Fibonacci 38.2%||20.06|
|Daily Fibonacci 61.8%||20.16|
|Daily Pivot Point S1||19.93|
|Daily Pivot Point S2||19.73|
|Daily Pivot Point S3||19.54|
|Daily Pivot Point R1||20.33|
|Daily Pivot Point R2||20.51|
|Daily Pivot Point R3||20.72|
Source: Fx Street