Silver Price Analysis: XAG/USD recovers slightly, though meanders at around $23.00
- Silver price rebounds modestly after hitting lows of $22.69, battling against high US Treasury yields.
- Neutral outlook persists despite drop below key DMAs, with potential recovery to $23.00 and beyond in sight.
- Bearish shift could see Silver testing support at $22.51, with further downside risk towards $21.88.
Silver price pared its earlier losses and gathered momentum late during Thursday’s North American session, up by a minuscule 0.08%, after bouncing off daily/weekly lows of $22.69 amid high US Treasury bond yields. At the time of writing, XAG/USD exchanges hands at $22.98.
The grey metal remains neutral biased, despite slumping below the convergence of the 200, 50, and 100-day moving averages (DMAs). That exacerbated Silver’s fall from around $24.00 to the $22.60s area.
As of writing, XAG/USD is forming a ‘dragonfly doji,’ suggesting that sellers are losing momentum, which means, if XAG’s buyers step In, they could regain the $23.00 psychological level. In that outcome, the next resistance would be the 100-DMA at $23.29, followed by the 50-DMA at $23.65. Up next is the 200-DMA at $23.65.
If Silver’s sentiment shifts bearish, the first support would be the December 13 cycle low of $22.51 before nosediving toward the November 13 swing low of $21.88.
XAG/USD Price Action – Daily Chart
XAG/USD Key Technical Levels
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
