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Silver Price Analysis: XAG/USD retreats towards $18.30 key support

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  • Silver price fades bounce off the seven-week-old support line.
  • Death cross, steady RSI favor sellers targeting fresh yearly low.
  • Key SMAs restrict immediate upside, monthly low can test sellers.

Silver price (XAG/USD) eases from the weekly high to $18.60, inching closer to the key trend line support during Friday’s Asian session. In doing so, the bright metal pares the previous day’s gains while bracing for a positive weekly closing.

That said, the metal’s failure to provide a successful break of the 50-SMA during the previous day’s run-up joins the steady RSI (14) to keep sellers hopeful.

As a result, the XAG/USD prices may again attempt to break the    upward-sloping support line from early September, around $18.30 by the press time, for the fourth consecutive time.

It’s worth noting, however, that the death cross on the four-hour chart adds strength to the bearish bias for the metal, suggesting a clear downside break of the $18.30 support, which in turn could direct the quote towards the yearly low near $17.55.

The 50-SMA’s downside break of the 200-SMA is known as the death cross and is generally favorable to the sellers. Also notable is that the lows marked in October and late September, around $18.00, could act as extra downside filters for the silver bears to watch.

Meanwhile, recovery moves not only need to cross the 50-SMA hurdle of $18.80 but should also stay beyond the 200-SMA level of $19.23 to convince buyers.

Silver: Four-hour chart

Silver Price Analysis: XAG/USD retreats towards $18.30 key support

Trend: Further downside expected

Additional important levels

Overview
Today last price 18.6
Today Daily Change -0.07
Today Daily Change % -0.37%
Today daily open 18.67
Trends
Daily SMA20 19.25
Daily SMA50 19.17
Daily SMA100 19.72
Daily SMA200 21.73
Levels
Previous Daily High 19.01
Previous Daily Low 18.23
Previous Weekly High 20.19
Previous Weekly Low 18.09
Previous Monthly High 20.02
Previous Monthly Low 17.56
Daily Fibonacci 38.2% 18.71
Daily Fibonacci 61.8% 18.53
Daily Pivot Point S1 18.27
Daily Pivot Point S2 17.86
Daily Pivot Point S3 17.49
Daily Pivot Point R1 19.04
Daily Pivot Point R2 19.41
Daily Pivot Point R3 19.81

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