Market news
23.08.2022, 07:33

Silver Price Analysis: XAG/USD bears have the upper hand below 61.8% Fibo. level

  • Silver consolidates in a range below the 61.8% Fibo. level and the $19.00 round-figure mark.
  • The set-up favours bearish traders and supports prospects for a further depreciating move.
  • Attempted recovery moves could now be seen as a selling opportunity and remain capped.

Silver struggles to capitalize on the overnight bounce from a four-week low and seesaws between tepid gains/minor losses on Tuesday. The white metal remains on the defensive below the $19.00 mark through the early European session and seems vulnerable to slide further.

This week's convincing break and acceptance below the 61.8% Fibonacci retracement level of the July-August positive move was seen as a fresh trigger for bearish traders. Furthermore, technical indicators on the daily chart are holding deep in the negative territory and are still far from being in the oversold zone. This validates the bearish outlook and supports prospects for a further depreciating move for the XAG/USD.

Hence, a slide back towards the previous day's swing low, around the $18.70 region, en route to the next relevant support near the $18.45-$18.40 area, remains a distinct possibility. The downward trajectory could further get extended and the XAG/USD could eventually drop back to challenge the YTD low, around the $18.15 zone touched in July. This is followed by the $18.00 mark, which if broken should pave the way for additional losses.

On the flip side, the $19.10-$19.15 region (61.8% Fibo. level) now seems to act as immediate strong resistance. Any further recovery could be seen as a selling opportunity and remain capped near the $19.40-$19.50 area. The latter marks a static support breakpoint, which coincides with the 50% Fibo. level and should act as a pivotal point. Sustained strength beyond could allow the XAG/USD to reclaim the $20.00 psychological mark.

Silver daily chart

fxsoriginal

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