The silver metal went in accordance to our analysis published on 26th Aug, anticipating bearish momentum in the market which would compel XAGUSD to drive itself towards 22.0 price action and one of our critical support zones. Major bearish factors published in our previous analysis were based on XAGUSD  trading below the support turned resistance 23.95 while flirting with 23.6% fibb retracement level at the same time. From the ichimoku perspective the silver metal was stuck between Tenkan Sen and Kijun sen of the ichimoku with tone of consolidation below our strong price action 23.95. An impulsive bearish closing below 22.91 pushed the XAGUSD towards 22.07 as expected. From one of our most important support zones 22.0, Silver gained traction for the second successive day and recovered further from the lowest level since November 2020, around the 22.0 mark this monday. The metal climbed to three-day tops, around the 22.90 region during the first half of the trading action on Wednesday, though lacked bullish conviction.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

From current levels, the 22.5 area could protect the immediate downside ahead of the overnight swing lows, around the 22.25-20 region. This is followed by the 22.00 round-figure mark (YTD lows), which if broken decisively will be seen as a fresh trigger for bearish traders and turn the XAGUSD vulnerable to slide further. On the other side, momentum above 22.9 area is likely to confront stiff resistance near the 38.2% Fibo level, around the 23.10 region. A sustained strength beyond might trigger a short-covering move and lift the XAGUSD towards the 50% Fibo, around the 23.45-50 region, en-route the 23.80-85 supply zone 61.8% Fibo.

XAGUSD

Sep 22 2021