Silver Price Analysis: XAG/USD bears gather strength to breach 100-DMA support


  • Silver tracked the sell-off in gold price after Fed’s hawkish turn.
  • XAG/USD battles 50-DMA as bears gather strength for the next downswing.
  • RSI has turned flat but stays bearish, keeping sellers hopeful.

Silver price (XAG/USD) tumbled in tandem with gold price on Wednesday, as the US Federal Reserve (Fed) surprised markets with hawkish signals, suggesting sooner-than-expected rate hikes and tapering prospects.

The US returns on the market jumped and drove the US dollar higher, weighing on the non-yielding bullion prices. Further, China’s announcement that their measures to curb the surge in commodity prices are achieving results also continue to keep the bearish undertone intact in silver.

Looking at it technically, the white metal seems to have found rejection above the 50-Daily Moving Average (DMA) at $27.02 on its road to recovery from Wednesday’s crash to multi-week lows of $26.61.

That said, the downside remains open for a test of the critical 100-DMA support at $26.64, around where the previous low coincides.

A daily closing below the latter could fuel a sharp drop towards the $26 level, below which the horizontal 200-DMA at $25.73 emerges as the last line of defense for silver bulls.

The Relative Strength Index (RSI) has turned flat but remains below 50.00, backing the case for further declines.  

Silver Price Chart: Daily chart

Alternatively, silver bulls need to recapture the 21-DMA barrier at $27.73 on a sustained basis, in order to negate the downbeat momentum.

However, the $27.50 psychological level could test the bullish commitment before.

Silver Additional levels

XAG/USD

Overview
Today last price 26.95
Today Daily Change -0.02
Today Daily Change % -0.07
Today daily open 27
 
Trends
Daily SMA20 27.78
Daily SMA50 27
Daily SMA100 26.63
Daily SMA200 25.74
 
Levels
Previous Daily High 27.83
Previous Daily Low 26.61
Previous Weekly High 28.29
Previous Weekly Low 27.47
Previous Monthly High 28.75
Previous Monthly Low 25.81
Daily Fibonacci 38.2% 27.08
Daily Fibonacci 61.8% 27.36
Daily Pivot Point S1 26.46
Daily Pivot Point S2 25.93
Daily Pivot Point S3 25.24
Daily Pivot Point R1 27.69
Daily Pivot Point R2 28.37
Daily Pivot Point R3 28.91

 

 

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