Silver Price Analysis: XAG/USD dives below the 100/200-DMA, turns bearish, eyeing $21.00
- Silver shifted bearish following Thursday’s daily close below the 200-DMA
- Silver Price Analysis: A downward condition is expected with price action and RSI’s coinciding on its bearish bias.
Silver price slides below a bottom-trend line of a bearish megaphone formation and is testing the 200-day Exponential Moving Average (EMA) at around $21.95. At the time of writing, the XAG/USD exchanges hands at $21.97.
From a daily chart perspective, XAG/USD threatens to crack the 200-day EMA, which, if accomplished, it could pave the way for further losses. In addition, oscillators turned bearish, notably the Relative Strength Index (RSI), while the Rate of Change (RoC) is almost flat, depicting that neither buyers/sellers are in control.
However, XAG/USD’s daily close below the 200-day EMA could send Silver prices diving. The next support area would be the $21.00 psychological price level, followed by the November 28 daily low of $20.87 and the November 21 low of $20.59.
As an alternate scenario, the XAG/USD’s first resistance would be the psychological $22.00 mark. A breach of the latter would expose a support-turned-resistance bottom trendline of the megaphone formation at $22.40, followed by the high of the week at $22.59.
Silver Daily Chart
Silver key technical levels
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.
