Silver Price Analysis: XAG/USD battles almost one-week low, simply above mid-$21.00s

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  • Silver stayed discouraged close to the week by week low contacted the earlier day.
  • The set-up favors negative dealers and supports possibilities for additional misfortunes.
  • Supported move past the $22.00 mark is expected to nullify the negative inclination.

Silver wavered in a reach, simply above mid-$21.00s through the main portion of the European meeting and solidified the earlier day’s downfall to north of a one-week low.

Given the new disappointments close to the 200-period SMA on the 4-hour graph, acknowledgment underneath the $22.00 round-figure imprint should have been visible as a new trigger for negative merchants. Also, specialized markers on hourly/day to day graphs are holding an in the negative area and add trustworthiness to the close term negative standpoint for the XAG/USD.

Some completion selling underneath the $21.50-$21.45 region would reaffirm the negative predisposition and prepare for extra misfortunes. The XAG/USD could then tumble to the $21.00 mark with some middle help close the $21.30 zone. The descending direction could get stretched out towards the YTD low, around the $20.45 locale addressed May 13.

On the other side, any endeavored recuperation move could now face firm opposition close the $21.90-$22.00 support breakpoint. The said locale likewise denotes a conversion hindrance including the 200-period SMA on the 4-hour diagram and the $20.46-$22.52 restorative skip, which ought to now go about as a critical crucial point for momentary dealers.

Supported strength past could set off a short-covering move and lift spot costs back towards the month to month top, around the mid-$22.00s contacted recently. The force could then permit bulls to recover the $23.00 round-figure imprint and lift the XAG/USD further towards the following pertinent obstacle close the $23.30 area.

Silver 4-hour chart

Key levels to watch


About the author

Nafees Saifi // entrepreneur, author, trainer, and stocks and FX trader. 
Nafees Saifi is a professional FX trader from, India. Nafees has extensive experience trading commodities, bonds, and equity futures in the Asian, European, and US markets. Nafees holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.


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