Silver Price Analysis: XAG/USD bears in control below $19.00

• Silver remains on the defensive, near one-month lows hit on Monday.
• The situation favors bearish traders and supports the prospect of further losses.
• Any recovery attempts above the $19.00 mark are likely to run out.

the silver it struggles to gain traction on Tuesday and is holding close to a one-month low hit the day before. The white metal is currently trading around $18.70 and looks vulnerable to continuing its recent downtrend seen over the last two weeks or so.

Considering last week’s failure near the 200-period SMA on the 4hr chart, acceptance below the $19.00 mark adds credence to the short-term bearish outlook for XAG/USD. Furthermore, the technical indicators on the daily chart remain in the negative territory and are still far from being in the oversold zone.

Therefore, a subsequent drop to retest the low of the year, around the $18.20-$15 zone touched on July 14, looks like a distinct possibility. This zone is closely followed by the $18.00 level, which if broken decisively will be seen as a new trigger for the bears and will lay the groundwork for a further downside move.

On the other hand, any recovery attempt is more likely to face stiff resistance and attract new sellers near the $19.00 mark. This should cap XAG/USD close to the 200-period SMA on the 4-hour chart. The said barrier is currently pegged near the $19.45-$19.50 region, which should now act as a pivot point.

If the strength holds beyond that, the short-term negative bias will be nullified and a short-covering move will ensue. XAG/USD could then aim to clear an intermediate hurdle near the $19.80 region and aim to reclaim the psychological $20.00 level.

Silver 4 hour chart

Technical levels