Silver is going to break below $24.6
farhan fazal
XAGUSD·
Apr 19 2023
Stop Loss -1.52%
Holding time 11d19hr
25.25
Entry price
25.64
Stop loss price
Silver comes under heavy selling following the previous day's modest bounce and drops to a one-and-half-week low during the first half of the European session on Wednesday. The white metal currently trades around the $24.70 area and flirts with the 23.6% Fibonacci retracement level of the recent rally from the YTD low - levels just below the $20.00 psychological mark touched in March.
The Relative Strength Index (RSI) on the 1-hour chart, meanwhile, is already flashing oversold conditions and is on the verge of breaking below the 30 mark on the 4-hour chart. Hence, any subsequent slide is more likely to find some support near the 100-period Simple Moving Average (SMA) on the 4-hour chart, which if broken decisively will be seen as a fresh trigger for bearish traders.
This, in turn, will set the stage for an extension of the recent pullback from a one-year high, around the $26.10 area touched last week. The XAG/USD might then fall to the $24.40-$24.30 strong horizontal resistance breakpoint, now turned support, before eventually dropping below the $24.00 mark, towards testing the next relevant support near the 38.2% Fibo. level, around the $23.75 area.
On the flip side, the $25.00 psychological mark seems to act as an immediate hurdle ahead of the $25.20-$25.25 supply zone. A sustained strength beyond will suggest that the corrective decline has run its course and lift the XAG/USD further towards the $25.80-$25.85 resistance en route to the $26.00 mark. Some follow-through buying will mark a fresh bullish breakout and pave the way for further gains.