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Silver Price Analysis: XAG/USD vulnerable below 50 DMA, clings to 38.2% Fibonacci level

  • 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

Technical levels


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

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