Nov 02, 2022 17:42
Silver struggles to gather traction on Wednesday and trades inside a limited range above mid-$19.00 through the early European session.
Technically, the overnight retracement decline from the $20.00 psychological level pauses at the 100-day simple moving average. This support coincides with the 50% Fibonacci retracement level of the current decline from the monthly swing high in October and should serve as a pivot point for XAG/USD.
Given the overnight breach of the aforementioned confluence barrier, the technical setup appears to favor bullish traders significantly. In addition, oscillators on the daily chart have just begun to move into positive territory, supporting the likelihood of a further appreciation. Thus, a new endeavor to achieve the $20.00 round number, which also marks the 61.8% Fibo. level, this appears to be a distinct possibility. Some follow-through buying has the potential to propel the XAG/USD higher towards an intermediate resistance level near $20.50 en route to $21.00.
In contrast, losses below the mid-$19.00s (100 DMA) may continue to attract buyers near the $19.00-$18.90 support zone, marking the 23.6% Fibonacci retracement level. level. A convincing breach below the latter will alter the short-term bias towards bearish traders and make the XAG/USD susceptible. The ensuing downward trend may therefore take the XAG/USD to the subsequent key support in the vicinity of $18.30 to $18.25. This is closely followed by the $18.00 round-figure mark, below which spot prices could attempt to test the yearly low, which was reached in September in the $17.55 region.
Nov 01, 2022 17:55