Silver Price Analysis: XAG/USD’s upside remains capped by 50-DMA amid mixed signals
- Silver lacks a clear directional bias, as the three-day winning streak stalls.
- RSI holds above the midline but bear cross on the 1D chart warrants caution.
- A drop towards $25.25 key support cannot be ruled out.
Having failed to find acceptance above the 50-daily moving average (DMA) at $26.06, silver (XAG/USD) sellers have fought back control on Monday.
The white metal snaps a three-day winning streak and remains trapped in a narrow range between the 50-DMA and 100-DMA barrier amid mixed technical signals. The 100-DMA support is aligned at $25.82.
On one hand, the 14-day Relative Strength Index (RSI) keeps its range above the midline, currently at 54.94, suggesting that the upside bias remains intact.
Meanwhile, a bear cross spotted on the said time frame last week points to a potential downside. The bearish crossover got confirmed after the 21-DMA pierced through the 200-DMA from above.
Silver Price Chart: Daily
Therefore, if the selling pressure intensifies, the 100-DMA support could be put at risk once again, opening doors towards the confluence of the 21 and 200-DMAs around $25.25.
On the flip side, a daily closing is needed above the 50-DMA to negate the bearish pressures while prompting the XAG bulls to take on the March 18 high of $26.64.
Silver Additional levels
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
