A Pullback from the 200-HMA Low of $22.00 in Silver Price has been Extended by XAG/USD

EnclaveFX Ltd
Feb 21, 2023

A Pullback from the 200-HMA Low of $22.00 in Silver Price has been Extended by XAG/USD

The silver price (XAG/USD) remains depressed at around $21.70 as the market head into Tuesday's European session, which represents the first loss-making day in three days. Hence, the bright metal is showing a clear reversal of its recent moves between February 09 and March 17, based on its 200-Hour Moving Average (HMA) and 50% Fibonacci retracement level.

There are other factors keeping XAG/USD sellers hopeful as well, not just the U-turn from the critical technical hurdles, but also the bearish MACD signals.

As a result, we can expect the precious metal's further decline toward the horizontal support of $21.40, which has remained stable for the past week.

On the other hand, the monthly low near $21.20 and the 61.8% Fibonacci Expansion (FE) of the metal's moves between February 09 and 20, around the $21.00 threshold, could pose some challenges for the silver bears.

When the metal remains bearish past $21.00, the odds of witnessing a slump toward the $20.00 psychological magnet can’t be ruled out.

The 200-HMA and 50% Fibonacci retracement levels, which are both near the $21.85 and $21.90 levels, respectively, prevent the XAG/USD from recovering in the near future.

Around $22.05. Silver buyers could be challenged by the 61.8% Fibonacci retracement level, also known as the gold Fibonacci ratio.

It may prove to be the last defense for the bears if the XAG/USD remains firm past $22.05.


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