Silver Price Analysis: XAG/USD bears are on a test around $23.50
- Silver price remains pressured around one-month-old ascending support line.
- Fortnight-long horizontal region, 100-SMA adds to the immediate downside filters.
- Bearish MACD signals keep sellers hopeful but further declines hinge on $23.35 breakdown.
- Bulls need validation from $24.30 to retake control.
Silver price (XAG/USD) stays depressed around $23.55 as bears poke the monthly support line during early Thursday. It’s worth noting that the bright metal dropped the most in two weeks the previous day.
Given the metal’s sustained downside break of the previous support line from December 16 and the bearish MACD signals, the XAG/USD price is likely to break the immediate support line close to $23.50.
However, a two-week-old horizontal area comprising the 100-SMA, between $23.35 and $23.45, appears a tough nut to crack for the silver bears.
Should the commodity price breaks the $23.35 support, the odds of witnessing a slump to $23.00 can’t be ruled out.
Following that, the mid-month swing low of $22.55 and the monthly bottom surrounding $22.00 will gain the market’s attention.
Meanwhile, recovery moves may initially aim for the two-wee-old support-turned-resistance line near the $24.00 round figure before eyeing the double tops surrounding $24.30.
It should be noted, however, that the XAG/USD run-up beyond $24.30 won’t hesitate to poke the $25.00 round figure. Though, April’s top surrounding $26.25 could challenge the Silver buyers afterward.
Overall, the Silver price is likely to remain bearish but the quote’s further downside hinges on a $23.35 breakdown.
Silver: Four-hour chart
Trend: Further weakness 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.
