Silver Price Analysis: XAG/USD stays pressured towards yearly low

  • Silver edges lower around multi-day low despite defending $23.00 threshold of late.
  • Failures to rebound past previous support line, MACD conditions favor sellers.
  • Bulls need to cross 200-SMA to regain control.

Silver (XAG/USD) remains mildly bid around $23.20, up 0.10% on a day, amid Friday’s Asian session. The bright metal bounced off $23.00 the previous day before trading inside a choppy range surrounding $23.20-30.

It should be noted, however, that the quote’s inability to extend the early week’s corrective pullback from the year’s low beyond a downward sloping trend line from June 29 keeps sellers hopeful. Also suggesting the commodity’s weakness is the MACD histogram that teases bears of late.

Hence, the metal sellers seem to take a breather before retesting the $23.00 that holds the key for further downside targeting October 2020 low near $22.60 and the yearly bottom surrounding $22.15, flashed on Monday.

Alternatively, the latest swing high around $23.60 and the support-turned-resistance line, near $23.90, restrict short-term bounces.

Also challenging the silver buyers is July’s low near $24.50 and 200-SMA close to $25.40.

Silver: Four-hour chart

Trend: Bearish

FX

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