Silver On Path To Nearest Support Level

Silver On Path To Nearest Support Level by Andrew Blumer last updated on October 05, 2023

Silver (XAG/USD) On Path To $22.20 Support Level

During Thursday's trading session, Silver has managed to find some demand & thus has recovered a little bit. However, it appears that the precious metal lacks the momentum required to sustain the upside momentum.

For now, Silver (XAG/USD) is trading below the resistance located near the $23.00. The technical reading of the Silver chart suggests that the decline starting from the $22.85 support zone allowed the much-needed trigger for the bears.

In addition, the daily chart shows that most of the oscillators are still in the negative but not in the oversold territory. So, based on all of that, it makes sense for the Silver (XAG/USD) to target the $22.20 & $22.10 support zones rather than the upside resistance.

$22.00 Remains An Important Support

If the bulls fail to defend the $22.20 & 22.10 support zone, then the precious metal will go down to test the $22.00 support zone. In case that support level is also broken with enough momentum, then the precious metal will target the $21.50 and $21.25 support zones.

On the other hand, we have the $23.00 resistance zone, which is followed by the $23.20 level. Both of these levels are crawling with sell orders & thus have the capability to send the Silver down to its old support levels once again.

In addition, the 200 SMA on the daily chart is also present near $23.50, followed by $23.80, where the 100 SMA is located. After that, we have the $24.00, which is also an important resistance zone for the Silver (XAG/USD) traders.

Given the technical outlook, the short-term trading direction for Silver (XAG/USD) is negative, with little chance of any upside. However, we also can't ignore the fact that USD is also an important part of the equation that can dictate the next direction of the Silver metal.

In general, any weakness in the US Dollar will provide a much-needed space for the Silver metal to truly shine & increase its price.