Silver Price Forecast: XAG/USD could find support near 200-period SMA on H4, around $50.00

LONDON (November 19) Silver (XAG/USD) attracts some sellers following an Asian session uptick to the $51.85 region and moves further away from the weekly high, touched the previous day. The white metal slides back below the $51.00 mark in the last hour, though the technical setup warrants some caution for bearish traders.

The XAG/USD found decent support and bounced off the 100-period Simple Moving Average (SMA) earlier this week. The said support is currently pegged near the $50.00 psychological mark and should act as a key pivotal point for short-term traders. A convincing break below would set the stage for the resumption of the retracement slide from a nearly four-week high, touched last Thursday.

The XAG/USD might then accelerate the downfall towards retesting the weekly swing low, around the $49.35 region touched on Tuesday. Some follow-through selling, leading to a subsequent break below the $49.00 mark, could make the commodity vulnerable and expose the next relevant support near mid-$48.00s. The downfall could extend further to the $48.00 round figure en route to the $47.15-$47.10 region.

On the flip side, the overnight swing high, around the $52.45 zone, now seems to act as an immediate hurdle, which, if cleared, will be seen as a fresh trigger for the XAG/USD bulls. The white metal might then aim towards reclaiming the $53.00 round figure before climbing further towards the $53.50-$53.55 region en route to the $54.00 mark and the monthly peak, around the $54.35-$54.40 region, touched last week.

FXStreet