Silver Price Analysis: XAG/USD bears brace for $23.00, 11-month-old support line
- Silver remains pressured for six consecutive days despite being off the yearly low.
- Bearish MACD, sustained trading below 200-DMA, previous support line favor sellers.
- Seven-month-old descending trend line acts as immediate support before an upward sloping support line from September 2020.
- Bulls have multiple hurdles before retaking the controls.
Silver (XAG/USD) retreats to $23.30, fades the previous day’s corrective pullback, amid a quiet Asian session on Wednesday.
The white metal slumped to refresh the yearly low on Monday before portraying a bearish consolidation on Tuesday. Though, MACD histograms back the commodity sellers cheering the downside break of a seven-week-old falling trend line, previous support, as well as the early August pullback from 200-DMA.
That said, the quote is well directed towards a downward sloping support line from January 18, around the $23.00 threshold.
However, any further downside will be challenged by an 11-month-long rising trend line near $22.70.
On the flip side, corrective pullback needs to regain the previous support line around $24.10 to challenge July’s low near $24.50.
Even so, a 200-DMA level of $25.91 becomes a tough nut to crack for the bulls.
Silver: Daily chart
Trend: Bearish
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.
