Silver Price Analysis: XAG/USD’s uptrend capped at the 200-DMA, retraced back below $21.80

Silver spot price climbed on Monday, though the 200-DMA capped its uptrend.
XAG/USD Price Analysis: The most likely scenario is downwards, with solid resistance from $21.90 and beyond.

Christian Borjon Valencia FXStreet

Silver price registered gains on Monday amidst thin liquidity conditions due to a US holiday. However, its rally was capped at a technical juncture, with the important 200-day Exponential Moving Average (EMA) rejecting higher prices for the white metal. Consequently, the XAG/USD retreated and settled at around $21.79 a troy ounce at the time of typing.

The XAG/USD daily chart portrays a large area of resistance resting above Silver’s spot price, led by the 200-day EMA at $21.93, followed by the 100, 20, and 50-day EMAs, each at $22.21, $22.36, and $22.64, respectively. Hence, the XAG/USD path of least resistance is downward biased. Still, the Relative Strength Index (RSI) turning flat at bearish territory, and the Rate of Change (RoC) almost neutral, suggests that bears are taking a respite before attacking the year’s lows.

Therefore, the XAG/USD first support would be the YTD low at $21.18. Once the white metal crosses the latter, it will expose the $21.00 figure, followed by the November 22 swing low at $20.87, and then the November 21 low at $20.59, ahead of the psychological $20.00 figure.

As an alternate scenario, if XAG’s bulls reclaim the 200-day EMA and the $22.00 mark, that would pave the way to retest the 100-day EMA.

XAG/USD Daily chart

XAG/USD Key technical levels

XAG/USD

Overview
Today last price	21.82
Today Daily Change	0.06
Today Daily Change %	0.28
Today daily open	21.76

Trends
Daily SMA20	22.76
Daily SMA50	23.34
Daily SMA100	21.98
Daily SMA200	21.02

Levels
Previous Daily High	21.81
Previous Daily Low	21.18
Previous Weekly High	22.08
Previous Weekly Low	21.18
Previous Monthly High	24.55
Previous Monthly Low	22.76
Daily Fibonacci 38.2%	21.57
Daily Fibonacci 61.8%	21.42
Daily Pivot Point S1	21.36
Daily Pivot Point S2	20.96
Daily Pivot Point S3	20.73
Daily Pivot Point R1	21.99
Daily Pivot Point R2	22.21
Daily Pivot Point R3	22.62

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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