Silver Price Analysis: XAG/USD sits at critical support juncture around $23.00
- Silver bears take a breather after the heaviest daily fall in three months.
- Key support lines from early 2021 and late 2020 challenges further downside.
- 50-DMA guards recovery moves, yearly support eyed during further weakness.
Silver (XAG/USD) licks its wounds around $22.90 during Friday’s Asian session, after declining the most on a day since mid-June the previous day.
Although bearish MACD and sustained trading below 50-DMA, coupled with an absence of oversold RSI, keeps silver sellers hopeful, an ascending trend line from September 2020 and a downward sloping support line from January 2021 challenge the quote’s immediate fall.
Should the commodity prices manage to stay pressured below $22.90 and $22.65 supports, the yearly low near $22.15 should return to the chart.
Following that, lows marked during November and September 2020, respectively around $21.90 and $21.65, will be in focus.
Meanwhile, corrective pullback needs to cross the early week low surrounding $23.40 to consolidate the recent losses.
Even so, silver bulls remain worried unless witnessing a clear upside break of 50-DMA level of $24.40. During the recovery moves, $24.00 may act as a buffer.
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.
