Silver Price Analysis: XAG/USD remains depressed around mid-$23.00s, holds above 61.8% Fibo.

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Silver Price Analysis: XAG/USD remains depressed around mid-$23.00s, holds above 61.8% Fibo.
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Silver Price Analysis: XAG/USD remains depressed around mid-$23.00s, holds above 61.8% Fibo. – by hareshmenghani Silver Commodities Technical Analysis XAGUSD Silver

irst day of a new week. The white metal maintains its offered tone through the early European session and is currently trading near the lower end of the daily range, around mid-$23.00s.

From a technical perspective, the recent pullback from the $25.25 area showed resilience below the 61.8%retracement level of the June-July rally and stalled near ascending trend-line support extending from a multi-month low touched in June. The subsequent move-up warrants some caution for bearish traders. That said, the lack of follow-through buying and a failure near the 50% Fibo.

However, it will still be prudent to wait for some follow-through selling below the ascending trend-line support, currently near the $23.20 region, which nears the very important 200-day Simple Moving Average , before placing fresh bearish bets. The XAG/USD might then turn vulnerable to weaken further below the $23.00 mark, towards retesting the multi-month low, around the $22.15-$22.10 area touched in June. This is closely followed by the $22.

On the flip side, the 50% Fibo. level, around the $23.70 area, now seems to act as an immediate hurdle. Any subsequent move up is likely to attract fresh sellers and remain capped near the $24.00-$24.10 confluence support breakpoint, turned resistance. The said area comprises the 100-day SMA and the 38.2% Fibo. level, which should act as a pivotal point. A sustained strength beyond could lift the XAG/USD back towards the 23.6% Fibo. level, around the $24.45-$24.

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