Silver Price: XAGUSD Plunges to $24.34 Level As Bears Dominate for 4th Day in a Row

Silver Price: XAGUSD Plunges to $24.34 Level As Bears Dominate for 4th Day in a Row

XAGUSD Price Analysis – January 11

Silver plunges to $24.34 level, down 1.25% during the early European session trading on Monday. The metal has been pressured for the last four days and is currently in a rebound from the $24.50 horizontal level. Meanwhile, a sustained downside breach will empower the sellers to increase pressure on the white metal.

Key Levels
Resistance Levels: $28.90, $27.50, $26.00
Support Levels: $23.50, $22.83, $21.89
XAGUSD Long term Trend: Ranging
Overall, XAGUSD risks remain skewed to the downside with the next relevant downside target seen at the $23.50 support level. The level at $22.83 will be the level to beat for the bears. It should be noted that the plunging RSI conditions are likely to bolster the silver bears towards the ascending trendline support, at a $21.89 level.

The white metal now trades with weakness slightly around the $25.12 level while trying to recover. On the other hand, if Silver price trades beyond the $26.00 level confluence zone, the upside traction might gain speed and activate buy orders seemingly triggering the abrupt upside move in silver towards the $27.50 high level.
XAGUSD Short term Trend: Ranging
On the lower time frame, technical analysis indicates that XAGUSD has broken into the downward channel and may range between the near term resistance level at $26.00 and short term low at $24.50 level. Any such breakout lower will keep the white metal selling towards the next support $23.50 level.

Above the $25.50 level may attempt recovery to the $26.00 level. Silver may recover from extremes and trades back in the $27.00s but may still trade lower with losses compared to the recent high of $27.92. The likely scenario will be short positions below $24.50 with targets at $23.50 & $23.00 levels in extension.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.