Silver Price Analysis: XAG/USD drops to fresh one-week low beneath $24.00, bears eye 200-SMA
- Silver Price takes offers to refresh multi-day low, down for the fifth consecutive day.
- Failure to cross seven-week-old resistance, downside break of 50-SMA joins bearish MACD signals to favor XAG/USD sellers.
- Oversold RSI conditions highlight 200-SMA as a tough nut to crack for Silver bears.
Silver Price prints five-day losing streak as it refreshes the weekly low around $23.90 amid early Tuesday. In doing so, the bright metal takes clues from the broad US Dollar rebound as the full markets return after the US Labor Day Holiday.
That said, the bright metal’s U-turn from a downward-sloping resistance line from July 19 joins the commodity’s downside break of the 50-SMA to keep the Silver sellers hopeful. Adding strength to the hopes favoring the metal’s south-run are the bearish MACD signals.
It’s worth noting, however, that the RSI (14) line is nearly oversold and hence the downside room appears limited, which in turn highlights the 200-SMA level of $23.75 as the key support.
In a case where the XAG/USD remains bearish past $23.75, the 61.8% Fibonacci retracement of June-July upside, near $23.30, will act as the final defense of the buyers.
On the contrary, an upside clearance of the 50-SMA level surrounding $24.30 could lure the intraday buyers of the XAG/USD.
Following that, the aforementioned resistance line from July, close to $24.65, should check the Silver bulls before giving them control.
Silver Price: Four-hour 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.
