A strong finish last week for US (and global) equities had seen safe-haven silver come back under selling pressure on the final day of the week, despite the fact that long-term US yields are lower and the shape of the curve flashing recession warnings. Spot silver (XAG/USD) was last down nearly 2.0%, having dropped all the way back from the $25.40s to current levels around $24.90, meaning the precious metal is now back to the south of its 21-Day Moving Average.

Whilst geopolitics remains the major driving force in the market right now, as traders/market participants assess the prospect of a potential Russo-Ukraine peace deal, the Fed has also been a big talking point last week.

Silver (XAG/USD) regains $25.00 while printing 0.50% intraday upside during Monday’s Asian session.

In doing so, the bright metal pares the biggest weekly fall since January by extending the last week’s bounce off the 50% Fibonacci retracement (Fibo.) of February-March upside, around $24.45, amid steady RSI.

However, the 10-DMA and the support-turned-resistance line from February 10, respectively near $25.45 and $25.60, will challenge the short-term XAG/USD bulls.

Should the prices rally past $25.60, the silver buyers will initially aim for $26.10 before challenging the monthly high surrounding the $27.00 threshold.

Alternatively, pullback moves can drop back to the 50% Fibo. level near $24.45 before targeting the 50-DMA, around $24.00 by the press time.

It’s worth noting, however, that the quote’s weakness past $24.00 will be challenged by the $23.90-85 area comprising the 61.8% Fibonacci retracement and the late February’s low.

Overall, silver prices are likely to extend the latest rebound but the bulls will remain cautious below $25.60.

A Short Selling Expected on Silver Towards D-EMA 50 & 200

Mar 21 2022

Stop Loss -1.89%

Holding time 3d0hr

25.21

Entry price

25.69

Stop loss price