Silver Price Analysis: XAG/USD prints seven-day downtrend as $22.60 lures bears


  • Silver Price remains depressed at the lowest level in two weeks.
  • Clear downbeat break of 200-EMA, bearish MACD signals direct XAG/USD sellers toward six-month-old rising support line.
  • Multiple hurdles stand tall to challenge Silver Price recovery even as RSI conditions suggest limited downside room.

Silver Price (XAG/USD) dropped for the seventh consecutive day while fading the previous day’s corrective bounce off a two-week low by declining to $23.10 early Thursday morning. In doing so, the bright metal justifies the bearish MACD signals and a clear downside break of the 200-day Exponential Moving Average (EMA).

In addition to the technical signals, the market’s downbeat sentiment and the broadly firmer US Dollar also keep the XAG/USD sellers hopeful.

However, the RSI (14) line is below 50.0 and suggests bottom-picking of the commodity, which in turn highlights an ascending support line from early March, close to $22.60 as the key level to watch for the bears.

It’s worth noting that the precious metal’s failure to rebound from $22.60, will make it vulnerable to test a one-year-long rising trend line, close to $22.10, quickly followed by the $22.00 threshold.

In a case where the Silver Price remains bearish past $22.00, the odds of witnessing a gradual downside toward March’s low of around $19.90 can’t be ruled out. During the likely fall, the 50.0% and 61.8% Fibonacci ratios of September 2022 to May 2023 upside, respectively near $21.85 and $20.80, as well as the $20.00 psychological magnet, can test the XAG/USD sellers.

Alternatively, a daily closing beyond the 200-EMA level of $23.25 isn’t an open invitation to the Silver buyers as multiple levels around $24.00 and $24.20 may test the Silver Price recovery before highlighting the key resistance line stretched from May, close to $24.70 at the latest.

Silver Price: Daily chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price 23.12
Today Daily Change -0.06
Today Daily Change % -0.26%
Today daily open 23.18
 
Trends
Daily SMA20 23.53
Daily SMA50 23.73
Daily SMA100 23.89
Daily SMA200 23.47
 
Levels
Previous Daily High 23.6
Previous Daily Low 23
Previous Weekly High 25.02
Previous Weekly Low 24.05
Previous Monthly High 25.02
Previous Monthly Low 22.23
Daily Fibonacci 38.2% 23.23
Daily Fibonacci 61.8% 23.37
Daily Pivot Point S1 22.92
Daily Pivot Point S2 22.67
Daily Pivot Point S3 22.33
Daily Pivot Point R1 23.52
Daily Pivot Point R2 23.85
Daily Pivot Point R3 24.11

 

 

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