Silver Price Analysis: XAG/USD slides 1%, eyeing key support level as buyers face resistance
- Silver is down by more than 1%, struggling to stay above the confluence of 50 and 20-day EMAs at $23.86/92.
- Failure to breach the April 29 swing low leads to increased selling pressure; YTD resistance at $24.20/30 adds to downward pressure.
- Bearish RSI signal and weakening buying pressure suggest XAG/USD’s path of least resistance is downwards.
Silver price retraces from last Friday’s highs of $24.20, down more than 1%, as sellers look to get XAG/USD price below the confluence of the 50 and 20-day ExponentialMoving Averages (EMAs) at around $23.86/92. At the time of writing, the XAG/USD is trading at $23.92.
XAG/USD Price Analysis: Technical outlook
The XAG/USD remains neutral to downward biased after slipping past support at the April 29 swing low of $24.49, a price level tested four times last month. However, buyers’ failure to crack that level exposed XAG/USD to selling pressure, witnessed by Monday’s price action as Silver collided with resistance at a downslope trendline drawn from year-to-date (YTD) highs of $26.13 that passes at around the $24.20/30 area.
In addition, the Relative Strength Index (RSI) indicator aims lower, about to pierce below the 50-midline, a bearish signal, while the three-day Rate of Change (RoC) sees the latest spike, well below the last three upside days, suggesting that buying pressure is fading.
Therefore, the XAG/USD path of least resistance is downwards. The first support would be the confluence of the 50 and 20-day EMAs at the $23.86/92 range. A breach of the latter will expose the 100-day EMA at $23.55, followed by the $23.00 figure ahead of the 200-day EMA at $22.96. Conversely, the XAG/USD first resistance would be the $24.00 threshold, ahead of April’s 29 low turned resistance at around $24.49.
XAG/USD Price Action – Daily chart
