Silver Price Analysis: XAG/USD at a brisk of falling below $21.00
- Silver is retreating from last week’s highs at $21.30.
- Failure to decisively break above the February 17 low of $21.18 exacerbated a fall toward $21.00.
- Silver Price Analysis: Dark cloud cover forms eyeing a break below $21.00.
XAG/USD fails to extend last Friday’s rally, retreats from weekly highs of around $21.30, and drops 0.92% or 0.20 cents in Monday’s session. At the time of writing, the XAG/USD is trading at $21.02, below its opening price.
XAG/USD Price action
Silver is downward biased, as shown by the daily chart. After testing the February 17 daily low, which turned resistance at $21.18, the XAG/USD spot price dropped, as bears eye $20.00. However, on its way south, the XAG/USD needs to clear the $21.00 barrier. Once removed, the XAG/USD next support would be the March 3 low of $20.84, followed by the March 1 low of $20.68. A breach of the latter would expose the YTD low of $20.43.
After exiting oversold conditions, the Relative Strength Index (RSI) turned the corner and its aiming down. That suggests that sellers are gathering momentum, further reinforced by the Rate of Change (RoC), as buying pressure is losing momentum.
As an alternate scenario, the XAG/USD first resistance would be the March 6 high at $21.30. Once buyers reclaim that level, Silver could rally toward the 20-day Exponential Moving Average (EMA) At $21.50 before reaching the 200-day EMA at $21.85.
XAG/USD Daily chart
XAG/USD Technical levels
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
