Silver Price Analysis: XAG/USD retreats from key resistance, further downside hinges on $23.50 break

Silver price takes a U-turn from a one-year-old descending resistance line, reverses from two-month high.
Overbought RSI (14) suggest the XAG/USD’s further downside but bullish MACD signals, 12-day-old support line challenge bears.
Silver buyers need validation from February’s high to retake control.

Anil Panchal FXStreet

Silver price (XAG/USD) drops to $23.90 as it snaps a three-week uptrend during early Monday. In doing so, the bright metal reverses from a downward-sloping resistance line from April 2022. Adding strength to the XAG/USD pullback is the overbought RSI (14) line.

However, the bullish MACD signals and a two-week-old ascending support line, close to $23.50 by the press time, restrict the short-term downside of the Silver price.

Following that, the 61.8% Fibonacci retracement level of the metal’s April-September 2022 downturn, near $22.90, could lure the XAG/USD bears.

It’s worth noting, though, that a convergence of the 21-DMA and 50-DMA, around $22.20 by the press time, appears a tough nut to crack for the Silver bears.

In a case where the Silver price remains weak past $22.20, the 22.00 and 50% Fibonacci retracement level around $21.90 act as the last defenses of the XAG/USD buyers.

Meanwhile, an upside clearance of the one-year-long resistance line, close to $24.05 at the latest, isn’t an open invitation to the Silver buyers as February 2023 tops surrounding $24.65 challenges the XAG/USD bulls before directing them to the April 2022 high of near $26.25.

Should the Silver price remains firmer past $26.25, the previous yearly high surrounding $27.300 will be in focus.

Silver Price: Daily chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	23.9
Today Daily Change	-0.18
Today Daily Change %	-0.75%
Today daily open	24.08

Trends
Daily SMA20	22.17
Daily SMA50	22.21
Daily SMA100	22.59
Daily SMA200	21.03

Levels
Previous Daily High	24.16
Previous Daily Low	23.7
Previous Weekly High	24.16
Previous Weekly Low	22.83
Previous Monthly High	24.16
Previous Monthly Low	19.9
Daily Fibonacci 38.2%	23.98
Daily Fibonacci 61.8%	23.87
Daily Pivot Point S1	23.8
Daily Pivot Point S2	23.51
Daily Pivot Point S3	23.33
Daily Pivot Point R1	24.27
Daily Pivot Point R2	24.45
Daily Pivot Point R3	24.73

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.

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