Silver Price Analysis: XAG/USD risks a drop to $24 after Thursday’s close below 100-DMA
- Silver looks south as sellers target 200-DMA support at $24.15.
- Daily closing below 100-DMA calls for further declines.
- Daily RSI has rebounded but remains within the bearish zone.
Silver (XAG/USD) trades in a narrow range between $25.50-25.00 so far this Friday, as the bears gear up for a fresh leg lower.
The white metal extends its bearish momentum into the third straight day, in response to the relentless surge in the US dollar amid the recent surge in Treasury yields.
From a technical perspective, silver’s sell-off intensified after the price closed below the three-month-old rising trendline support at $26.26 on Wednesday.
Silver Price Chart: Daily
The metal remains on track for additional declines, especially after Thursday’s closing below the critical 100-daily moving average (DMA) at $25.43 offered that extra zest to the bears.
Silver kicked-off Friday just at the 100-DMA barrier, making it a crucial resistance should the bulls attempt any recovery.
Further up, the rising trendline support now resistance at $26.38 could be challenged.
The 14-day Relative Strength Index (RSI) has reversed from lows but remains well below the midline, suggesting that the downside bias remains intact.
Therefore, the gates remain open for a test of the upward-sloping 200-DMA at $24.15.
Silver Additional levels
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
