Silver Price Analysis: XAG/USD retreats towards $18.30 key support
- Silver price fades bounce off the seven-week-old support line.
- Death cross, steady RSI favor sellers targeting fresh yearly low.
- Key SMAs restrict immediate upside, monthly low can test sellers.
Silver price (XAG/USD) eases from the weekly high to $18.60, inching closer to the key trend line support during Friday’s Asian session. In doing so, the bright metal pares the previous day’s gains while bracing for a positive weekly closing.
That said, the metal’s failure to provide a successful break of the 50-SMA during the previous day’s run-up joins the steady RSI (14) to keep sellers hopeful.
As a result, the XAG/USD prices may again attempt to break the upward-sloping support line from early September, around $18.30 by the press time, for the fourth consecutive time.
It’s worth noting, however, that the death cross on the four-hour chart adds strength to the bearish bias for the metal, suggesting a clear downside break of the $18.30 support, which in turn could direct the quote towards the yearly low near $17.55.
The 50-SMA’s downside break of the 200-SMA is known as the death cross and is generally favorable to the sellers. Also notable is that the lows marked in October and late September, around $18.00, could act as extra downside filters for the silver bears to watch.
Meanwhile, recovery moves not only need to cross the 50-SMA hurdle of $18.80 but should also stay beyond the 200-SMA level of $19.23 to convince buyers.
Silver: Four-hour 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.
