Market news
17.05.2022, 10:20

Silver Price Analysis: XAG/USD stalled near 50% Fibo., bearish flag spotted on short-term charts

  • Silver gained positive traction for the third straight day on Tuesday.
  • The recent price action constituted the formation of a bearish flag.
  • Negative oscillators further support prospects for additional losses.

Silver built on its recovery from a near two-year low touched last week and gained positive traction for the third successive day on Tuesday. The momentum pushed spot prices to a four-day high, around the $21.85 area during the first half of the European session, though lacked follow-through.

The intraday uptick stalled near the 50% Fibonacci retracement level of the $23.24-$20.46 downfall and should act as a pivotal point for intraday traders. Any subsequent move up, however, is likely to confront stiff resistance near the $22.00 mark, representing the top end of an ascending channel.

Given the recent sharp decline, the aforementioned trend channel constitutes the formation of a bearish flag pattern. Moreover, technical indicators on the daily chart are still holding deep in the negative territory, suggesting that the attempted recovery runs the risk of fizzling out rather quickly.

That said, a convincing break through the $22.00 mark would negate the bearish outlook and trigger a fresh bout of a short-covering rally. The XAG/USD might then surpass the 61.8% Fibo. level, around the $22.20 region and accelerate the momentum to the next relevant hurdle near the $22.55 area.

On the flip side, the 38.2% Fibo. level, around the $21.50 zone, now seems to protect the immediate downside. This is closely followed by the ascending trend-channel support, near the $21.35 region, which if broken decisively will reaffirm the bearish bias and pave the way for further losses.

Silver 1-hour chart

fxsoriginal

Key levels to watch

 

© 2000-2022. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Feedback
Live Chat E-mail
Up
Choose your language / location