Silver Price Analysis: XAG/USD extends 200-DMA breakdown to refresh three-month low near $22.00
- Silver Price drops to the lowest levels in three months during five-day losing streak.
- Clear downside break of previous support line from mid-March, 200-DMA favor XAG/USD bears.
- Bearish MACD signals also suggest further downside of the Silver Price but RSI (14) hints at a pullback.
- Nine-month-old ascending support line appears the key challenge for metal sellers.
Silver Price (XAG/USD) stands on slippery grounds as it declines for the fifth consecutive day to print the lowest level since March 17 to around $22.15 amid Friday’s Asian session.
In doing so, the bright metal justifies the early-week break of an ascending support line from mid-March, now resistance around $23.20, as well as the previous day’s smashing of the 200-DMA level surrounding $22.50.
Also favoring the Silver sellers are the bearish MACD signals.
However, the oversold RSI (14) line suggests limited downside room for the XAG/USD, which in turn highlights the 50% Fibonacci retracement level of the metal’s upside from September 2022 to May 2023, close to $21.80.
Following that, an upward-sloping support line from early September and the 61.8% Fibonacci retracement level, respectively around $21.30 and $20.80, will act as the last defense of the Silver buyers.
Meanwhile, the XAG/USD run-up beyond the 200-DMA level of $22.50 and the support-turned-resistance line of around $23.20 could convince the buyers to challenge the monthly high surrounding $24.55, a break of which will push the Silver bears off the table.
Silver Price: Daily chart
Trend: Limited downside 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.
