Silver Price Analysis: XAG/USD struggles to keep bounce off 100-DMA below $24.00
- Silver price remains sidelined after bouncing off seven-week low.
- RSI suggests further recovery but bearish MACD signals, 50-DMA test XAG/USD bulls.
- Silver buyers need validation from $24.65; downside break of 100-DMA highlights sub-$23.00 area for sellers.
Silver price (XAG/USD) struggles to defend the previous day’s rebound from the key moving average to around $23.85 early Monday. In doing so, the bright metal remains sidelined after bouncing off the lowest levels since late March the previous day.
That said, the RSI (14) line recovers from the oversold territory, which in turn favors the XAG/USD rebound from the 100-DMA. However, the 50-DMA hurdle of around $24.25 joins the bearish MACD signals to challenge the metal buyers.
Even if the Silver price manages to remain firmer past $24.25, February’s high of around $24.65 can act as the last defense of the XAG/USD bears before directing the quote toward the $25.00.
Additionally, the Silver price upside past $25.00 may witness multiple stops near $25.30 and $25.50, a break of which might propel the bullion price toward the latest peak of around $26.15.
Alternatively, the XAG/USD sellers may wait for a daily closing beneath the 100-DMA support, close to $23.40 by the press time.
Following that, the 38.2% Fibonacci retracement level of the Silver Price upside from August 2022 to May 2023, near $22.85, will be key to watch for the sellers.
In a case where the XAG/USD stays bearish past $22.85, the 200-DMA and 50% Fibonacci retracement, respectively near $21.95 and $21.80, will be in the spotlight.
Silver price: Daily chart
Trend: Limited recovery 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.
