Silver Price Analysis: XAG/USD Struggles Near Multi-week Low, Seems Vulnerable to Slide Further

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

  • Silver remains under some selling pressure for the fourth successive day on Thursday.

  • The technical setup favours bearish traders and supports prospects for deeper losses.

  • A sustained strength beyond $23.60-70 barrier is needed to negate the negative bias.


Silver (XAG/USD) attracts fresh sellers following an uptick to the $22.65 region and drifts into negative territory for the fourth successive day on Thursday. The white metal extends its intraday descent through the first half of the European session and drops to the $22.35 area in the last hour, back closer to over a three-week low touched on Wednesday.


From a technical perspective, nothing seems to have changed for the XAG/USD and the near-term bias remains tilted firmly in favour of bearish traders. Against the backdrop of the recent repeated failures to find acceptance above the very important 200-day Simple Moving Average (SMA) and the overnight rejection near the $22.85-$22.80 horizontal support breakpoint validates the negative outlook.


Moreover, oscillators on the daily chart have just started drifting in the negative territory and support prospects for an extension of the recent downfall from the $23.60-$23.70 supply zone, which constituted the formation of multiple tops on the daily chart. Some follow-through selling below Wednesday's swing low, around the $22.30 area, will reaffirm the bearish bias and drag the XAG/USD to the $22.00 mark.


The next relevant support near the $21.70 zone, below which the XAG/USD could extend the downward trajectory further towards the $21.35-$21.30 support en route to the $21.00 round figure. Bearish traders might eventually aim to challenge a multi-month low, around the $20.70-$20.65 area touched in October.


On the flip side, the $22.80-$22.85 region might continue to act as an immediate hurdle ahead of the $23.00 mark and the 200-day SMA, currently near the $23.25 region. This is followed by the $23.60-$23.70 supply zone, which if cleared decisively will shift the near-term bias in favour of bullish traders. The XAG/USD might then climb further beyond the $24.00 mark, towards the $24.20-$24.25 intermediate hurdle, before making a fresh attempt to conquer the $25.00 psychological mark.

fxsoriginal

XAG/ USD, Source: FXStreet.


* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

Do you find this article useful?
Related Articles
placeholder
Silver Price Analysis: XAG/USD stabilizes around $30.50 as bulls and bears battleSilver price stabilizes above the $30.50 area for the second straight day, following Monday’s losses of more than 1.20% that tumbled the grey’s metal price beneath the $31.00 figure.
Author  FXStreet
Jul 10, Wed
Silver price stabilizes above the $30.50 area for the second straight day, following Monday’s losses of more than 1.20% that tumbled the grey’s metal price beneath the $31.00 figure.
placeholder
Silver Price Forecast: XAG/USD jumps higher above $30 as Fed Powell prompts optimism on rate cutsSilver price (XAG/USD) rallies to near $30.50 in Wednesday’s American session. The white metal weakens as the US Dollar (USD) fell on the backfoot after Federal Reserve (Fed) Chair Jerome Powell said in the European Central Bank (ECB) Forum on Central Banking on Tuesday that recent data suggests the United States (US) economy has returned on the disinflationary path.
Author  FXStreet
Jul 03, Wed
Silver price (XAG/USD) rallies to near $30.50 in Wednesday’s American session. The white metal weakens as the US Dollar (USD) fell on the backfoot after Federal Reserve (Fed) Chair Jerome Powell said in the European Central Bank (ECB) Forum on Central Banking on Tuesday that recent data suggests the United States (US) economy has returned on the disinflationary path.
placeholder
Silver Price Analysis: XAG/USD remains depressed near $29.30-35 area, lacks follow-throughSilver (XAG/USD) struggles to capitalize on its modest gains registered over the past three days and attracts some sellers during the Asian session on Tuesday.
Author  FXStreet
Jul 02, Tue
Silver (XAG/USD) struggles to capitalize on its modest gains registered over the past three days and attracts some sellers during the Asian session on Tuesday.
placeholder
Silver Price Analysis: XAG/USD flat lines above mid-$29.00s, 50-day SMA holds the key for bullsSilver (XAG/USD) finds some support ahead of the 50-day Simple Moving Average (SMA) and stages a modest bounce from a three-day low, around the $29.35 region touched during the Asian session on Monday.
Author  FXStreet
Jun 24, Mon
Silver (XAG/USD) finds some support ahead of the 50-day Simple Moving Average (SMA) and stages a modest bounce from a three-day low, around the $29.35 region touched during the Asian session on Monday.
placeholder
Silver price today: Silver declines, according to FXStreet dataSilver prices (XAG/USD) fell on Thursday, according to FXStreet data.
Author  FXStreet
Jun 13, Thu
Silver prices (XAG/USD) fell on Thursday, according to FXStreet data.