- Home
- Analytics
- Market News
- Silver Price Analysis: XAG/USD climbs back closer to 100-day SMA support breakpoint
Market news
Silver Price Analysis: XAG/USD climbs back closer to 100-day SMA support breakpoint
- Silver stages a solid rebound from over a two-month low touched this Friday.
- The setup warrants some caution before positioning for any further recovery.
- A sustained move beyond the $24.00 mark could negate the bearish outlook.
Silver gains strong positive traction on Friday and snaps a four-day losing streak to the $22.70-$22.65 area, or over a two-month low touched earlier today. The white metal maintains its bid tone through the early North American session and currently trades around the $23.20-$23.25 zone, up over 2% for the day.
A slightly oversold Relative Strength Index (RSI) on the daily chart turns out to be a key factor that prompts aggressive short-covering around the XAG/USD. That said, this week's convincing break through the 100-day Simple Moving Average (SMA) support and the overnight slide below the 50% Fibonacci retracement level of the March-May rally favour bearish traders. This, in turn, suggests that any subsequent move up might still be seen as a selling opportunity and runs the risk of fizzling out rather quickly.
The 100-day SMA support breakpoint, currently pegged around the $23.35 region, is likely to act as an immediate hurdle. This is followed by 38.2% Fibo. level, near the $23.75 zone, above which the XAG/USD could climb to the $24.00 mark. The latter should act as a pivotal point, which if cleared decisively might trigger a fresh wave of a short-covering move and lift the commodity further beyond the $24.20-$24.25 hurdle. The recovery momentum could get extended towards the $24.50-$24.60 strong support breakpoint.
On the flip side, the monthly low, around the $22.70-$22.65 region, now seems to protect the immediate downside ahead of the 61.8% Fibo. level, near the $22.25 area. Some follow-through selling, leading to a subsequent slide below the $22.00 mark should pave the way for an extension of the recent downfall from over a one-year top touched earlier this month. The XAG/USD might then accelerate the fall towards the $21.55-$21.50 intermediate support before eventually dropping to the $21.00 round-figure mark.
Silver daily chart
Key levels to watch
Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.
TeleTrade EU is a multi-award-winning, EU licensed and regulated Cyprus Investment Firm.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69.66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2023 TeleTrade-DJ International Consulting Ltd
This website is operated by Teletrade-DJ International Consulting Ltd, which is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11. Teletrade-DJ International Consulting Ltd is located at 88, Arch. Makarios Avenue, 2nd floor, Nicosia Cyprus.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Please read our full Terms of Use.
To maximise our visitors' browsing experience, TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.
Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69.66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
