Silver Price Analysis: XAG/USD struggles at 50-DMA and slumps below $23.00
- Silver extended its losses to seven consecutive days and stayed below $23.00.
- If XAG/USD drops below $22.70, further downside is seen below $22.00.
- Bulls reclaiming $23.00 could pave the way for a recovery.
Silver price erased earlier gains and turned negative, down 0.30% following a softer US inflation report, which initially bolstered XAG/USD prices. Nevertheless, as US Treasury bond yields pared its losses, the grey metal lost its shine. The XAG/USD is trading at $22.74, retesting a two-month-old support trendline.
Silver remains neutral to downward bias, at the brisk of accelerating its downtrend if sellers push prices below the above-mentioned trendline. Once done, the next demand area would be the November 13 swing low of $21.88, followed by the October 6 daily low of $20.69.
On the other hand, if XAG/USD stays above that trendline and reclaims the $23.00 figure, the first technical barrier would be the 50-day moving average (DMA) at $23.12. Additional key resistance levels lie ahead, like the 100-DMA at $23.20, followed by the 200-DMA at $23.51. Once surpassed, the $24.00 figure would be up for grabs.
XAG/USD Price Analysis – Daily Chart
XAG/USD Technical Levels
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
