Silver Drops To Weekly Lows

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Silver Drops To Weekly Lows

Silver (Xag/Usd) Drops To Weekly Lows

Monday was not so fortunate for the Silver (XAG/USD) as it remained under pressure for the 2nd day in a row (Friday & Monday).

After the recent decline in Silver, the precious metal reached its 2-week low, which is near 22.31 for now. This move of the Silver is due to the fact that the metal has been trying to reclaim 200 SMA only to fail again.

Silver Faces Rejection At 200 Sma

In fact, all of the bearish trends in the Silver can be attributed to the attempts to reclaim the 200 SMA. Just like that, the oscillator indicators on the Silver daily chart are still in the negative area, which means the XAG/USD is posed for more downside.

That's why it is safe to say that any more selling in the Silver will send it under the $22.00 support. It is also important to note that Silver has already touched the below $22.00 levels in January.

Any follow-through of the selling in Silver will open the doors to the area between $21.40 and $21.25, where a lot of pending buy orders are present. So, if the Silver (XAG/USD) finds support near the $21.20 - $21.00 area, it shouldn't come as a surprise.

On the upside, the $23.00 remains a key resistance area that is likely to cap any recovery attempts. If the $23.00 is reclaimed by the bulls, it will mean the next battleground for the bulls and bears is the $23.25 to $23.30 area. However, it is essential to note that the 200 SMA is also present in this area.

So, if the Silver attempts to cross this area only to get rejected by the 200 SMA once again, it shouldn't come as a surprise. However, a break of the 200 SMA will mean the $24.00 will come back on the cards as a bullish target once again.

follow-through of the buying momentum could send the XAG/USD to the next targets, such as the $24.50, $24.80, and $25.00 handles.

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