Silver Price Analysis: XAG/USD grinds between 61.8% golden ratio and 10-DMA
- Silver price fades bounce off 10-DMA, grinds lower of late.
- 61.8% Fibonacci retracement level, impending bear cross on MACD favor sellers.
- Six-week-old ascending trend line acts as the key support.
Silver price (XAG/USD) fade the previous day’s recovery to around $23.25 during early Monday.
In doing so, the bright metal retreats from the 61.8% Fibonacci retracement level of March-August downside and the 10-DMA level. It’s worth noting that the stated Fibonacci level is also known as the golden ratio and is considered a strong technical resistance.
Not only the metal’s pullback from the strong resistance but the looming bear cross on the MACD, as well as the nearly overbought RSI (14), also tease the Silver bears.
However, a clear downside break of the 10-DMA support near $22.00 appears necessary to convince sellers.
Following that, an upward-sloping trend line from November 03, close to $22.60 by the press time, could challenge the XAG/USD bears before directing them to the 50% Fibonacci retracement level of $22.25.
If at all, the Silver bears keep the reins past $22.25, the odds of witnessing a slump toward October’s peak of $21.25 can’t be ruled out.
On the flip side, a daily closing beyond the 61.8% Fibonacci retracement level of $23.40 could recall the Silver buyers and can poke the monthly peak surrounding $24.15.
Should the Silver buyers keep the driver’s seat past $24.15, April’s high near $26.25 will be in focus.
Silver price: Daily chart
-19122022-638070215327378480.png)
Trend: Further 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.
