Silver Price Analysis: XAG/USD appears well-set to renew multi-day low near $21.00
- Silver price refreshes 11-week low during five-day losing streak.
- 100-DMA breakdown, bearish MACD signals favor sellers around multi-day low.
- Oversold RSI hints at corrective bounce, highlights 200-DMA, $20.00 as key supports.
Silver price (XAG/USD) holds lower ground at the 2.5-month bottom surrounding $21.45 amid the early hours of Friday morning in Europe.
The bright metal refreshed the multi-day low on breaking the 100-DMA, as well as taking clues from the bearish MACD signals. However, the oversold RSI (14) conditions suggest limited downside room for the XAG/USD.
As a result, the 200-DMA level surrounding $21.00 appears putting a short-term floor under the Silver price.
In a case where the XAG/USD drops below $21.00, a convergence of the previous resistance line from March 2022 and an ascending trend line from the last September, close to the $20.00 psychological magnet, will be a tough nut to crack for the Silver sellers.
It should be noted that the quote’s weakness past $20.00 makes it vulnerable to test the previous yearly bottom marked in September at around $17.55.
Alternatively, XAG/USD rebound remains elusive unless crossing the 100-DMA level near the $22.00 round figure.
Following that, the 50% and 61.8% Fibonacci retracements of the metal’s fall between March and September of 2022, respectively near $22.30 and $23.35, could act as additional upside filters for the Silver buyers to watch. Above all, the monthly high of $24.63 acts as the last defense of the XAG/USD bears.
Silver price: Daily chart
Trend: Limited downside 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.
