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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.

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 price21.82
Today Daily Change0.06
Today Daily Change %0.28
Today daily open21.76
 
Trends
Daily SMA2022.76
Daily SMA5023.34
Daily SMA10021.98
Daily SMA20021.02
 
Levels
Previous Daily High21.81
Previous Daily Low21.18
Previous Weekly High22.08
Previous Weekly Low21.18
Previous Monthly High24.55
Previous Monthly Low22.76
Daily Fibonacci 38.2%21.57
Daily Fibonacci 61.8%21.42
Daily Pivot Point S121.36
Daily Pivot Point S220.96
Daily Pivot Point S320.73
Daily Pivot Point R121.99
Daily Pivot Point R222.21
Daily Pivot Point R322.62

Author

Christian Borjon Valencia

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.

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