Silver Price Analysis: XAG/USD bears approach key supports surrounding $21.00
- Silver price holds lower ground near one-week bottom, down for the third consecutive day.
- Three-month-old ascending trend line, 200-DMA to join nearly oversold RSI to challenge XAG/USD bears.
- Buyers remain off the table unless crossing 100-DMA.
Silver price (XAG/USD) remains on the back foot at the weekly low near $21.30 during early Friday in Asia. In doing so, the bright metal drops for the third consecutive day while extending the early-week pullback from the 100-DMA and a 3.5-month-old horizontal resistance area.
It’s worth noting that the bearish MACD signals keep the XAG/USD sellers hopeful. However, the RSI (14) appears oversold and suggests a pause in the metal’s south run.
As a result, an upward-sloping support line from late November, close to $21.20 by the press time, as well as the 200-DMA level of around $21.00, gain major attention.
Following that, the late November swing low of around $20.60-55 could act as the last defense of the Silver buyers before directing the commodity price towards November 2022 bottom near $18.80.
Meanwhile, recovery moves may initially aim for the $21.50 before jostling with the aforementioned horizontal resistance area and the 100-DMA surrounding $22.00-05.
In a case where the Silver price offers a daily closing beyond $22.05, February 09 high near $22.60 and the previous monthly low near $22.80 will be crucial to watch for the XAG/USD bulls.
Silver price: Daily chart
Trend: Limited downside 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.
