Silver Price Analysis: XAG/USD breaks below the 200-DMA, extends its fall below $21.90

Silver price stumbles below the 200-day EMA at $21.95, shifting its bias to neutral-downwards.
XAG/USD Price Analysis: Shifted neutral-to-downwards, though two more closes below the 200-DMA would cement its downward bias.

Christian Borjon Valencia FXStreet

Silver price continues to trade beneath the bottom-trendline of a megaphone formation and below the 200-day Exponential Moving Average (EMA) at 21.95, a bearish signal for the white metal. It should be said that a daily close below the latter would pave the way for further downside. At the time of writing, XAG/USD exchanges hands at $21.84 a troy ounce after hitting a daily high of $22.03.

After dropping below the bottom-trendline of a megaphone formation, the XAG/USD has failed to regain the $22.50 mark and exposed the 200-day EMA. A daily close is needed to further cement a change on the neutral bias to neutral-downwards, and it will expose untested support areas since December of 2022.

If that scenario plays out, the XAG/USD first support would be the November 28 daily low of $20.87, followed by the November 21 swing low of $20.59. Once cleared, the psychological level of $20.00 would be up for grabs.

In an alternate scenario, the XAG/USD first resistance would be the 200-day EMA at $21.94, ahead of the $22.00 figure. Once broken, Silver could aim inside the megaphone formation, but firstly it needs to crack the bottom trendline at $22.20.

It should be said that oscillators like the Relative Strength Index (RSI) suggest a bearish continuation, but the Rate of Change (RoC), confirms that sellers are losing momentum. Hence, the XAG/USD might consolidate around the $21.60-$22.00 area, awaiting a fresh catalyst before determining its direction.

XAG/USD Daily chart

XAG/USD Key technical levels

XAG/USD

Overview
Today last price	21.85
Today Daily Change	-0.12
Today Daily Change %	-0.55
Today daily open	21.97

Trends
Daily SMA20	23.17
Daily SMA50	23.43
Daily SMA100	21.86
Daily SMA200	21

Levels
Previous Daily High	22.08
Previous Daily Low	21.79
Previous Weekly High	22.62
Previous Weekly Low	21.84
Previous Monthly High	24.55
Previous Monthly Low	22.76
Daily Fibonacci 38.2%	21.9
Daily Fibonacci 61.8%	21.97
Daily Pivot Point S1	21.82
Daily Pivot Point S2	21.66
Daily Pivot Point S3	21.53
Daily Pivot Point R1	22.11
Daily Pivot Point R2	22.24
Daily Pivot Point R3	22.4

Author

Christian Borjon Valencia

FXStreet

Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.

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