- Silver is losing ground for the second day in a row and slipping to more than a one-week low.
- The drop marks a bearish dip below a week-old trading range.
- Bears still need to wait for a sustained break below $20.00 before placing new bets.
Silver Witnesses sold for the second day in a row on Tuesday and fell more than a week away, around the psychological mark of $20.00 during the mid-European session.
The decline follows last week’s failure near the 61.8% Fibonacci retracement level of the fall from $22.52 to $18.15 and marks a bearish break below a trading range. a week old. Adding to this, acceptance below 50% Fibo. and the 50-day SMA supports the outlook for further depreciation of XAG/USD.
That said, the oscillators on the daily chart – although they have lost ground – have yet to confirm the negative outlook. It is therefore prudent to wait for sustained weakness below the $20.00 mark before placing further bearish bets and positioning for an upcoming slide below the 38.2% Fibo. level, around the region of $19.80.
The next relevant support is anchored near the $19.55 area (last week’s low), which should now act as a key pivot point. A convincing break below would shift the bias in favor of bearish traders and expose the 23.6% Fibo. level, around the region of $19.20 to $19.15. XAG/USD could eventually drop to $19.00.
On the other hand, the 50% Fibo. level, around the $20.35 region, now appears to be acting as strong immediate resistance. Any further rise could attract further selling near the $20.65 horizontal area. This, in turn, should limit any further gains for XAG/USD near the 61.8% Fibo. level, around the region of $20.85.
Silver daily chart
Key levels to monitor