Silver Price Analysis: XAG/USD defends $23.00, looks set for a bumpy road to the south
- Silver remains mildly offered around one-week low, recently teasing daily bottom.
- Bearish MACD, pullback from 10-day EMA favor sellers during three-day downtrend.
- Multiple trend lines to challenge bears ahead of yearly low.
Silver (XAG/USD) drops 1.25% during early Thursday, around $23.20 by the press time. In doing so, the white metal justifies Tuesday’s pullback from 10-day EMA amid bearish MACD to refresh one-week low, not to forget declining for the third consecutive day.
It should be noted, however, that the current south-run has a bumpy road before hitting the yearly low of $22.16, flashed on August 09.
Among them, a downward sloping trend line from January, near $23.00, becomes the first rest-point for the silver bears.
Following that, an 11-month-old ascending support line, near $22.70, will act as an additional filter.
It’s worth marking that the quote’s weakness past $22.16, will aim for the $22.00 threshold but lows marked during the November and September months of 2020, respectively around $21.90 and $21.65, will entertain the bears.
Alternatively, a daily closing beyond the 10-day EMA level of $23.76 needs validation from March low near $23.80 and the weekly top surrounding $24.00 to recall the XAG/USD buyers.
Silver: Daily 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.
