Silver Price Analysis: XAGUSD maintains modest intraday gains, still below the $19.00 level

• Silver gains some positive traction on Wednesday, although it lacks continuation buying.
• The bearish setup supports the prospects for fresh selling at higher levels.
• Sustained strength above the $19.40 to $19.50 zone is needed to negate the downtrend.

the price of the silver (XAG/USD) moves higher on Wednesday, although it has no bullish conviction and remains below the $19.00 level during the first half of the European session.

From a technical point of view, XAG/USD, so far, has struggled to break out of the 50-period SMA on the 4-hour chart. This makes it prudent to wait for strong continuation buying before positioning for an extension of this week’s bounce from near a two-year low around the $18.15 region touched last Friday.

For its part, technical indicators have just started to gain positive traction on the hourly chart, although they remain in bearish territory on the daily chart. This suggests that any move higher could continue to be seen as a selling opportunity and quickly fade near the supply zone of $19.40-$19.50.

On the other hand, the horizontal zone of $18.50 seems to protect the immediate fall ahead of the annual minimum, around the region of $18.15. This zone is closely followed by the $18.00 level, which if broken decisively would be seen as a new trigger for the bears and pave the way for an extension of the recent bearish trajectory.

XAG/USD could then accelerate the decline towards intermediate support at $17.45-$17.40 towards the level of $17.00. The downtrend could extend further and drag silver prices towards the next relevant support near the trading area. $16.70-$16.60.

Silver 4 hour chart

Silver key levels to watch