Silver Trades Higher Despite Bearish Pressure

last updated on

Silver Trades Higher Despite Bearish Pressure

Silver (XAG/USD) Trades Above $24.00 Despite Bearish Pressure

It's the 4th day in a row that the Silver (XAG/USD) remains defensive as its prices continue to drop. Although the Silver prices are now close to a 1-week low, they are still above the $24 support zone.

So once the Silver (XAG/USD) gets really close to the $24.00 or tries to close below it, there's a good chance that many pending buy orders will be triggered.

According to economists, the recent downtick in Silver is nothing but 'technical selling' as the precious metal failed to break its bearish trendline from $26.10 to $26.15. In addition, the oscillators, along with other indicators, also indicate caution is needed for both bearish and bullish traders.

$23.80 Remains An Important Level

Looking ahead, any further fall in the Silver will likely lead us to the 200 SMA, which may act as dynamic support on the 4-hour chart. For now, the 200 SMA on the Silver's 4-hr chart is near the $23.80 level. So if the bears manage to even clear that hurdle, the next stop will be the $23.55 support level.

One thing to note here is that the $23.55 is where the 200 SMA on the D-1 chart is present and thus presents an important support level. In fact, there's a good chance that the Silver prices may pivot from the $23.55 - $23.40.

If these Silver levels are broken with strong momentum, the next support level for the Silver traders will be $23.00. In case the downward pressure further intensifies, there's a good chance that the precious metal may find support near the $22.20 to $22.10 level.

On the other side, the immediate hurdle for the Silver (XAG/USD) bulls is $24.30 and the $24.35. After that, the next resistance zone for Silver is $24.75, which coincides with the bearish trend line. So, in a sense, the break of the $24.75 will also signify a trend shift and may push the Silver towards the $25.00 and then the $25.25 level.

If we look at the Silver D1 chart, the 20 SMA is currently present at $23.43, while the 50 SMA is at $23.68. In addition, the 100 SMA and the 200 SMA are located at $23.93 and $23.43 respectively.

Trending Stories