- The price of silver moves higher on Wednesday and recovers from the low of more than two months reached the day before.
- The technical situation favors the bears and supports the prospects of a further depreciation move.
- A convincing break below the $22.00 level will reaffirm the negative outlook and trigger further selling.
The price of silver (XAG/USD) moves higher on Tuesday and moves away from the lows around $22.00 reached the day before. The white metal maintains its modest intraday gains during the early stages of the European session and is trading near the upper end of its daily range at around $22.35.
From a technical point of view, XAG/USD once again showed some resistance below the 38.2% Fibonacci retracement of the recent rally from October 2022. The subsequent bounce warrants some caution before positioning for a further move lower to short term. That being said, the oscillators on the daily chart remain in negative territory and are still far from the oversold zone. This, in turn, favors bears.
A convincing break below the $22.00 level will reaffirm the negative outlook and drag XAG/USD to the next relevant support near the 100-day SMA around the $21.70-$21.65 zone. Next, the XAG/USD could target the 50% Fibonacci around the $21.35 zone, below which the white metal could fall to the $21.00 level, on its way to the 61.8% Fibonacci around to the zone of $20.60-$20.55. The downtrend could extend towards testing the psychological $20.00 level.
On the other hand, any further move higher is likely to attract new sellers near the $22.70 zone and remain capped near the breakout of the $23.00 confluence support. This wave comprises the 23.6% Fibonacci and the lower end of a nearly two-month trading range and should be a tough nut to crack for XAG/USD bulls. That being said, a sustained move above this region could offset the negative outlook and shift the short-term bias in favor of the bulls.
silver daily chart
silver technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
