Silver Price Analysis: Wednesday’s Doji prods XAG/USD bulls below $23.50 hurdle
- Silver price retreats after positing bearish candlestick the previous day.
- Overbought RSI conditions, repeated failures to cross three-month-old resistance line also tease XAG/USD bears.
- 10-DMA restricts immediate downside; $24.00 acts as an extra filter towards the north.
Silver price (XAG/USD) slides to $23.30 while printing mild losses during Thursday’s sluggish Asian session.
In doing so, the bright metal justifies the previous day’s Doji candlestick, as well as overbought conditions of the RSI (14) line, to push back the bullish bias below a downward-sloping resistance line from early January 2023. Additionally, keeping the XAG/USD sellers hopeful is the receding strength of the MACD’s bullish bias.
However, the 10-DMA support of $23.00 restricts the immediate downside of the Silver price, a break of which could quickly drag the quote towards the 61.8% Fibonacci retracement level of its February-march fall, near $22.80.
In a case where the XAG/USD remains bearish past $22.80, the 50% and 38.2% Fibonacci retracement levels, around $22.25 and $21.70 in that order, could test the Silver sellers before directing them to the early March high of $21.30.
On the contrary, a daily closing beyond the three-month-old descending resistance line, around $23.50 by the press time, becomes necessary for the Silver buyers to defy the downbeat signals flashed through the previous day’s Doji and retake control.
Even so, the multiple resistances near $24.00 can test the XAG/USD buyers ahead of highlighting the yearly top surrounding $24.65.
Overall, Silver price is likely to witness a pullback but the downside room appears limited.
Silver price: Daily chart
Trend: Pullback expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
