Silver price (XAGUSD) rebound strongly in Asan trading session after the Friday’s sharp sell-off that drove the price down to six-month lows. Investors dump safe-haven assets on Friday as many traders took profits off the table to cover margin calls on stocks and other risky assets that battered the previous week. Speculation that central banks might intervene in the markets in the upcoming weeks also pressured the silver and gold.
The silver has lost over 10% from the previous Monday highs at 18.94. The sell-off accelerated on Friday after the silver price breached below the 100-day. Today silver makes an attempt to regain the positive momentum regaining the 200-day moving average.
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Silver Price Technical Analysis
The silver price after an initial strong start above the $17 mark gave up gains and returned back to 16.70 area. Silver price stalled at the 200-day moving average failing to cancel the recent negative momentum.
On the upside, the first hurdle for the silver price will be met at 17.04 the daily top. Extra selling pressure for the silver price will be met at 17.52 the 100-day. In case of a move higher the next resistance level stands at 17.8222 the 50-day moving average.
On the downside, first intraday support for the silver price will be met at $16.18 the daily low. Below that level, more bids might emerge at 15.97 the low from August 2, 2019. Next support area to watch on the downside stands at $15.53 the July 17, 2019 low.
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