Silver Price Analysis: XAG/USD sellers brace for $23.85 key support
- Silver remains pressured after posting the biggest daily fall in a month.
- Metal drops back below previous resistance following a pullback from 50-DMA.
- 20-DMA, monthly support line constitute key support, falling trend line from early July adds to the upside filters.
Silver (XAG/USD) holds onto the previous day’s downside momentum, the weakest in a month, around $24.35 during the early Wednesday morning in Asia.
The bright metal slipped back below a downward sloping resistance line from June 11 to justify the pullback from 50-DMA and market heavy fall.
The metal’s weakness pulls the Momentum line from a three-month high and adds to the bearish signals.
That said, the commodity prices drop towards a convergence of 20-DMA and an ascending trend line from August 09, near $23.85.
However, the quote’s further weakness will make it vulnerable to revisit the August 20 low near $22.87 before challenging the yearly trough surrounding $22.15.
Meanwhile, the stated resistance line from June and 50-DMA, respectively near $24.50 and $24.80, guard silver’s short-term recovery moves.
Following that, the XAG/USD traders will have to cross a descending resistance line from July 06, around $25.10 to recall the bulls and direct them towards an August high of $26.00.
Silver: Daily chart
Trend: Further weakness 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.
