Silver Price Analysis: XAG/USD sellers brace for $23.40 around monthly support line
- Silver fades bounce off one-week low, stays below 10-DMA.
- 21-DMA, 50-DMA confluence restricts short-term downside.
- Tops marked in September-October challenge bulls amid descending RSI/MACD line.
Silver (XAG/USD) remains on the back foot around $23.80, down 0.30% intraday during Monday’s Asian session. The bright metal dropped to the lowest in one week, also slipped below 10-DMA, the previous day but refrained from providing a daily close beneath an ascending support line from September 30.
Even so, the receding RSI line from the nearly overbought territory and MACD’s easing bullish bias keep the silver sellers hopeful. In doing so, the metal bears target a convergence of 21 and 50-DMA around $23.40.
It’s worth noting that a six-week-old horizontal area near $23.10-15 will challenge the XAG/USD bears afterward.
Meanwhile, recovery moves remain less welcome until staying below the 10-DMA level of $24.10.
Also challenging silver buyers is the $24.60 and tops marked during September and October, near $24.85.
To sum up, silver sellers are tightening the grips but the short-term DMA confluence may challenge the bearish impulse.
Silver: Daily chart
Trend: Further weakness 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.
