Silver Price Analysis: XAG/USD clinging onto 200-DMA support, downside favored
|- Silver’s path of least resistance appears down, per the daily chart.
- Acceptance below 200-DMA support to trigger a fresh sell-off.
- RSI stays bearish, with 21-DMA acting as a strong upside hurdle.
Silver (XAG/USD) extends weakness into the second straight day on Thursday, as the critical 200-daily moving average (DMA) support at $25.03 is now put to test.
The white metal managed to close Wednesday above that level, although the upside break lacked conviction, as the sellers return on Thursday.
The 14-day Relative Strength Index (RSI) trades listless below the midline, the bearish territory, allowing room for declines.
The XAG bears are now looking for a strong foothold below 200-DMA, below which a steep drop towards the April 5 low of $24.61 cannot be ruled.
The psychological $24 mark could guard the downside towards the three-month lows of $23.78.
Silver Price Chart: Daily
However, if the bulls retain control above the abovementioned crucial support at $25.03, a bounce towards the horizontal 21-DMA, now at $25.40 can be seen.
The horizontal 100-DMA at $25.67 is a powerful hurdle for the bulls to crack.
Silver Additional levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.