Market news
22.07.2022, 07:05

Silver Price Analysis: XAG/USD remains confined in range below $19.00 mark

  • Silver struggled to gain any meaningful traction and remained below the $19.00 mark.
  • Mixed oscillators on hourly/daily charts warrant some caution for aggressive traders.
  • Strength beyond mid-$19.00s would suggest that the XAG/USD has formed a bottom.

Silver failed to capitalize on the overnight goodish rebound from the $18.25 area, or a multi-day low and remained below the $19.00 mark through the early European session on Friday.

Sustained strength beyond the aforementioned handle could trigger a fresh bout of a short-covering and lift the XAG/USD towards the $19.40-$19.50 strong horizontal resistance. Some follow-through buying would suggest that the white metal has formed a near-term base and pave the way for some meaningful recovery from a two-year low touched last week.

The XAG/USD could then aim back to reclaim the $20.00 psychological mark. The momentum could further get extended and push spot prices to the next relevant barrier near the $20.55-$20.60 region. The latter marks a strong horizontal support breakpoint and should act as a pivotal point, which if cleared decisively would set the stage for additional gains.

Positive technical indicators on hourly charts, meanwhile, support prospects for some intraday gains. That said, oscillators on the daily chart are still holding deep in the negative territory. This, in turn, warrants some caution for aggressive bullish traders and suggests that any meaningful move up could attract fresh selling at higher levels.

On the flip side, the $18.50 horizontal zone now seems to protect the immediate downside ahead of the overnight swing low, around the $18.25 region. This is closely followed by the YTD low, around the $18.15 area and the $18.00 mark. A convincing break below the latter would make the XAG/USD vulnerable to extending the recent downward trajectory.

The subsequent fall has the potential to drag spot prices towards the $17.45-$17.40 intermediate support en-route to the $17.00 round-figure mark. The bearish trend could further get extended and the XAG/USD could eventually drop to test the next relevant support near the $16.70-$16.60 region.

Silver 4-hour chart

fxcsoriginal

Key levels to watch

 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location