Silver Price Analysis: XAG/USD bears can ignore latest bounce to 100-day SMA
- Silver struggles to keep week-start gap-up but snaps three-day losing streak.
- Bearish MACD, downbeat RSI joins sustained break of yearly support line, now resistance, to favor silver sellers.
- Yearly low, 200-day SMA will be a tough nut to crack for bears.
Silver prices waver around $25.40, fading the initial run-up to $25.56, during Monday’s Asian session. In doing so, the white metal confronts 100-day SMA while also keeping the last week’s break of an ascending trend line from March 2020.
Given the bearish MACD and descending RSI line join the previous week’s downside break of the key support line and 100-day SMA, silver prices are likely to remain depressed.
However, fresh selling can wait until the bears conquer January 27 low near $24.70 as it triggered the commodity’s bounce during Friday.
Also acting as the strong downside barrier is a confluence of 200-day SMA and the yearly low near $24.20.
Meanwhile, a daily closing beyond the 100-day SMA level of $25.45 will need to cross the previous support line, at $25.80 now, to recall the silver buyers.
Following that, lows marked during late February around $26.20 should test the bulls targeting the monthly top beyond $27.00.
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.
