Silver Price Analysis: XAG/USD sellers attack 100-week SMA on the way to $22.00
|- Silver prints three-day downtrend near yearly low, recently off multi-day low.
- Bearish MACD signals further downside but Momentum seems to dwindle of late.
- Corrective pullback needs to regain $23.00 to recall the buyers, key Fibonacci retracement and 200-week SMA lure bears.
Silver (XAG/USD) sellers tease the yearly low surrounding $22.15-20 amid the initial Asian session on Monday. In doing so, the white metal battles with the 100-week SMA amid bearish MACD signals and a weaker Momentum line.
Although the strong SMA and less-favorable Momentum for further downside challenge the silver bears, the rebound needs to cross the support-turned-resistance line from September 2020, around $23.00, to convince buyers.
Even so, April’s low around $23.80 and the monthly peak near $24.85 adds to the upside filters.
Meanwhile, a clear break of the $22.23 SMA level will direct the CAG/USD prices towards 50% Fibonacci retracement of March 2020 to February 2021 upside, near $20.82.
In a case where the silver sellers keep reins past $20.82, the $20.00 threshold and 200-week SMA near $19.00 will challenge them afterward.
Silver: Weekly chart
Trend: Short-covering move expected
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.