Silver Price Analysis: Tide turning in favor of XAG/USD bears, $24 back in sight
- Silver looks south, as 200-DMA support gives way once again.
- RSI has turned south below the midline while 21-DMA caps the upside.
- A test of the horizontal support sub-$24 is back on the table.
Silver (XAG/USD) is battling the critical 200-daily moving average (DMA) support at $25.11, as sellers look for an entry, in a bid to test the $24 mark.
The white metal breached the abovementioned support on Friday but managed to recapture it on a daily closing basis.
However, the XAG bulls continue to lack conviction, as the bears step in and fight back control on Monday.
The 14-day Relative Strength Index (RSI) edges lower, moving away from the midline, allowing room for more declines.
A daily closing below the 200-DMA could expose the April 5 low of $24.61.
Further south, the $24 round figure could offer some reprieve to the XAG bulls.
The sellers would then target the three-month lows of $23.78, where the horizontal trendline (orange) coincides.
Silver Price Chart: Daily
Alternatively, any recovery attempts would need to clear the bearish 21-DMA, now at $25.32.
The horizontal 100-DMA at $25.70 will then get tested, with the bulls seeking total control.
Silver Additional levels
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
