Silver Price Analysis: XAG/USD prints seven-day downtrend as $22.60 lures bears
|- Silver Price remains depressed at the lowest level in two weeks.
- Clear downbeat break of 200-EMA, bearish MACD signals direct XAG/USD sellers toward six-month-old rising support line.
- Multiple hurdles stand tall to challenge Silver Price recovery even as RSI conditions suggest limited downside room.
Silver Price (XAG/USD) dropped for the seventh consecutive day while fading the previous day’s corrective bounce off a two-week low by declining to $23.10 early Thursday morning. In doing so, the bright metal justifies the bearish MACD signals and a clear downside break of the 200-day Exponential Moving Average (EMA).
In addition to the technical signals, the market’s downbeat sentiment and the broadly firmer US Dollar also keep the XAG/USD sellers hopeful.
However, the RSI (14) line is below 50.0 and suggests bottom-picking of the commodity, which in turn highlights an ascending support line from early March, close to $22.60 as the key level to watch for the bears.
It’s worth noting that the precious metal’s failure to rebound from $22.60, will make it vulnerable to test a one-year-long rising trend line, close to $22.10, quickly followed by the $22.00 threshold.
In a case where the Silver Price remains bearish past $22.00, the odds of witnessing a gradual downside toward March’s low of around $19.90 can’t be ruled out. During the likely fall, the 50.0% and 61.8% Fibonacci ratios of September 2022 to May 2023 upside, respectively near $21.85 and $20.80, as well as the $20.00 psychological magnet, can test the XAG/USD sellers.
Alternatively, a daily closing beyond the 200-EMA level of $23.25 isn’t an open invitation to the Silver buyers as multiple levels around $24.00 and $24.20 may test the Silver Price recovery before highlighting the key resistance line stretched from May, close to $24.70 at the latest.
Silver Price: Daily chart
Trend: Limited downside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.