Silver Price Analysis: XAG/USD rebound remains elusive below 200-DMA
- Silver price snaps four-day downtrend while bouncing off the lowest levels since early November 2022.
- Bearish MACD signals, sustained trading below 200-DMA keep sellers hopeful.
- Multiple hurdles stand tall to challenge XAG/USD buyers.
Silver price (XAG/USD) clings to mild gains around $20.70 as bulls struggle to defend the first daily gains in five during early Tuesday.
That said, the bright metal dropped to the lowest levels since November 2022 before bouncing off $20.56. The metal’s recovery could be linked to a U-turn from the three-month-old horizontal support.
Despite the latest rebound, the XAG/USD remains on the seller’s radar as it stays below the 200-DMA amid bearish MACD signals.
Even if the precious metal crosses the 200-DMA hurdle of $21.00, a downward-sloping resistance line from February 02, close to $21.25 by the press time, could challenge the Silver buyers afterward.
It’s worth observing that the XAG/USD bears remain hopeful unless the quote stays below the $22.00-10 resistance area comprising multiple tops marked since the last November.
On the contrary, a daily closing below the aforementioned three-month-old horizontal support near $20.50 will challenge an ascending support line from early September 2022, around $20.25 to please the Silver bears.
It should be noted that the $20.00 psychological magnet acts as an extra filter toward the south.
Overall, the Silver price remains weak unless breaking the $22.10 hurdle. The downside moves, however, appear to have limited room towards the south.
Silver price: Daily chart
Trend: Bearish
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.
