Morning Market Updates – Silver (XAG/USD) Analysis

Silver remains in red after yesterday’s session and met its target and strong support at 17.697, where a temporary footstep was found. Near term action is in narrow consolidation above the 17.697 handle and holds below the broken support, maintaining a bearish near-term bias that keeps XAU/USD’s price under pressure. Bears may extend towards the next pivotal support at 17.610 loss of which would expose the pair to another strong support at 17.537. The scenario is expected to remain in play while the price holds below resistance, otherwise a strong downside pressure would ease on breaking and close above 17.697.

Silver has failed to reach strong resistance at 17.913 while support can be found at 17.697. The pair lies in a downtrend channel and is expected to show another leg lower.

In the long term, the trend is rater negative. Further downsides are very likely. Resistance is located at 17.697. Strong support can be found at 17.610.

On a strong breakout, the market is looking for confirmation that the move will not simply and quickly be retraced. There has been a bit of a wobble and breakout but as yet it is holding. The current strong candle breakout was followed by a corrective move which has held the resistance. However, having posted a low at 17.697, the longer the market holds on to this band of old support that has turned into new resistance, the more confident the bears will be. Momentum is strong yet with the Stochastics at 20.0 level. The next task is for the bears to breakout below the resistance and to continue the bearish run, there are clear indications for the bulls as a degree of tiredness creeping in. The four-hourly chart shows an unwinding of near term momentum to levels where the bears have tended to hold resistance.

Subsequent upside resistance is 17.697. The bears will remain in control below 17.697.Silver price achieved strong break to 17.697 level and settled below it, to turn its intraday track downwards, targeting testing 17.610 areas in the upcoming period, supported by the negative pressure formed by the EMA50 now which has been broken and below the MA. Therefore, the bearish bias will be suggested in the upcoming sessions unless the price managed to rally bullishly to breach 17.697 levels and hold above them.

Expected trading range for today is between 17.610 support and 17.879 resistance.

Expected trend for today: Bearish
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