On November 9th, Silver reached and cleanly rejected the 26.00 high, which is a strong psychological resistance. At the same time, the price has bounced off the downtrend trendline and rejected the uptrend trendline, which has acted as the resistance.
Almost immediately after, a sharp downside move followed, suggesting a strong selling pressure. The most recent price action shows that a pullback took place, where the price bounced off the 61.8% Fibs at 25.05, yet again confirming bearish dominance. Today, XAG/USD failed to break above the 50 Simple Moving Average along with the average-price downtrend trendline, which might result at the beginning of a downside move.
Sellers could push the price down towards one of the key support levels based on the Fibonacci retracement levels as well as previously established supply/demand zones. The nearest support is located at 23.87, which is confirmed by 61.8% and 38.2% Fibs, as can be seen on the chart. This level also corresponds to the 50 SMA breakout point that occurred On November 5th. The second and perhaps the critical support is located at 23.00, which is not only psychological but also technical support, confirmed by 88.6% and 23.6% Fibonacci retracement levels.
The nearest resistance has been formed at 24.67, which is today’s’ high. 4-hour break and close above this level might invite more buyers, pushing the price to the 25.05 resistance. Although only a 4h break and close above 25.05 will invalidate the bearish scenario and in this case, Silver should be expected to continue a long-term uptrend.
Key support levels: 23.88, 23.00
Key resistance levels: 25.05, 24.66
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new daily analysis.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice
Almost immediately after, a sharp downside move followed, suggesting a strong selling pressure. The most recent price action shows that a pullback took place, where the price bounced off the 61.8% Fibs at 25.05, yet again confirming bearish dominance. Today, XAG/USD failed to break above the 50 Simple Moving Average along with the average-price downtrend trendline, which might result at the beginning of a downside move.
Sellers could push the price down towards one of the key support levels based on the Fibonacci retracement levels as well as previously established supply/demand zones. The nearest support is located at 23.87, which is confirmed by 61.8% and 38.2% Fibs, as can be seen on the chart. This level also corresponds to the 50 SMA breakout point that occurred On November 5th. The second and perhaps the critical support is located at 23.00, which is not only psychological but also technical support, confirmed by 88.6% and 23.6% Fibonacci retracement levels.
The nearest resistance has been formed at 24.67, which is today’s’ high. 4-hour break and close above this level might invite more buyers, pushing the price to the 25.05 resistance. Although only a 4h break and close above 25.05 will invalidate the bearish scenario and in this case, Silver should be expected to continue a long-term uptrend.
Key support levels: 23.88, 23.00
Key resistance levels: 25.05, 24.66
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new daily analysis.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice