Silver Price Analysis: XAG/USD sellers eye three-week-old support line
- Silver prices fail to cross 21/50-day EMA confluence, sellers attack $24.00.
- Normal RSI conditions, sustained trading below the key EMAs keep sellers hopeful.
- 1.5-month-old falling trend line adds to the upside barriers.
Silver prices remain on the back foot despite a recent bounce off $23.98, currently down 0.71% around $24.08, during early Thursday. The while metal flashed a bullish spinning top candlestick on the previous day while bouncing off one week low. However, the recovery moved failed to cross a joint of 21-day and 50-day EMA, which in turn favors the bears amid normal RSI conditions.
As a result, sellers are currently targeting an upward sloping support line from September 24, at $23.90, a break of which could challenge the monthly bottom surrounding $22.87.
However, the $23.00 round-figure may offer an intermediate halt during the downside whereas the previous month’s bottom surrounding $21.65 will attack further selling of the bullion.
Meanwhile, an upside clearance of EMA confluence near $24.50/55 isn’t enough for the bull’s entry as a falling trend line from September 01, at $24.90, followed by the $25.00 threshold can probe silver’s upside moves.
In a case where the bulls dominate past-$25.00, the monthly high of $25.56 and the early September low near $25.85 will be in the spotlight.
Silver daily 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.
