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Silver (XAG/USD) Technical Update: Confluence Support in Focus

Silver (XAG/USD) Technical Update: Confluence Support in Focus

Richard Snow, Analyst
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Silver Technical Update

  • Silver sell-off continues despite late bid last week
  • Price action approaches the confluence zone around 23.20
  • Long-term uptrend remains in place
  • The analysis in this article makes use of chart patterns and key support and resistance levels. For more information visit our comprehensive education library
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Silver Sell-off Continues Despite Late Bid Last Week

Silver’s long-term uptrend remains intact as the precious metal enters what could land up being a third successive week of declines. On the weekly chart below, the confluence zone of support - identified in last week’s update – appears around 23.20. The zone comprises of the 23.20 level which coincides with the lower bound of the rising pitchfork.

Silver Weekly Chart


Source: TradingView, prepared by Richard Snow

The daily chart helps to hone in on price action in more granular detail as Friday’s late bid saw metals like gold and silver find a slight reprieve from the recent selling. Once more, 23.20 was in sight but Friday’s move higher brought the 50% Fibonacci retracement (of the 2021 – 2022 move) into focus as the immediate level of resistance.

The RSI has lifted from near oversold territory, allowing more room to the downside for silver bears after the recent rise. Resistance, apart from the 50% Fibonacci retracement appears at 24.65 and the psychological level of 25

Silver Daily Chart


Source: TradingView, prepared by Richard Snow

IG Client Sentiment Data Mixed


Silver:Retail trader data shows 82.65% of traders are net-long with the ratio of traders long to short at 4.76 to 1.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Silver prices may continue to fall.

The number of traders net-long is 1.36% higher than yesterday and 3.23% lower from last week, while the number of traders net-short is 2.95% higher than yesterday and 14.67% lower from last week.

Positioning is less net-long than yesterday but more net-long from last week. The combination of current sentiment and recent changes gives us a further mixed Silver trading bias.

--- Written by Richard Snow for

Contact and follow Richard on Twitter: @RichardSnowFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.