Silver Price Analysis: XAG/USD keeps pullback from 100-DMA around $21.50
- Silver price remains sluggish after posting the biggest daily loss in two weeks.
- Clear U-turn from 100-DMA, bearish MACD signals favor XAG/USD sellers.
- Buyers need daily closing beyond $22.60 to retake control.
Silver price (XAG/USD) struggles for clear directions at the weekly low surrounding $21.50 during early Thursday, after posting the biggest daily slump in a fortnight.
Although the early hours of the day restrict the metal’s moves, the XAG/USD remains on the bear’s radar while observing the previous day’s clear U-turn from the 100-DMA hurdle. Adding strength to the downside bias are the bearish MACD signals.
As a result, the Silver price is well-set to test the 200-DMA support of $21.00. However, the 50% Fibonacci retracement level of the metal’s upside from October 2022 to February 2023, around $21.35 will precede the latest swing low near $21.20 to probe the immediate downside.
In a case where the Silver bears dominate past 200-DMA, the 61.8% Fibonacci retracement level around $20.60, also known as the golden Fibonacci ratio, could act as an intermediate halt during the quote’s likely fall toward the $20.00 psychological magnet.
On the flip side, the Silver buyers are less likely to get convinced even if the metal offers a daily closing beyond the 100-DMA hurdle of $22.00.
That said, the 38.2% Fibonacci retracement and an 11-week-old horizontal resistance area, respectively near $22.15 and $22.55-60, could act as the last defense of the XAG/USD bears.
Overall, the Silver price is likely to remain bearish despite the latest inaction.
Silver price: Daily chart
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.
