10-DMA, 13 day old support test XAG/USD falls below $24.00

  • Silver is taking offers to refresh intraday lows during four-day downtrend.
  • Pullback from 200-DMA, tempering bullish bias from MACD favorite sellers.
  • 100-DMA contributes to the downside filters, a five month old horizontal area appears to be a tough nut to crack for bulls.

Silver (XAG/USD) prices remain on the back foot for the fourth straight day, falling 0.50% around the intraday low of $23.72 heading into Wednesday’s European session.

The bright metal’s recent weakness is set to extend last week’s pullback from the 200-DMA. The listing is also being weighed down by the recently weakening MACD line.

However, the 10-DMA and an ascending trend line from Jan. 17 around $23.70 and $23.55, respectively, call into question the commodity’s near-term declines.

If XAG/USD bears remain dominant above $23.55, the $23.24 and $23.00 100-DMA levels will be on their radar.

Alternatively, the corrective pullback could first aim to regain the round figure of $24.00 before challenging the 200-DMA level near $24.60.

Thereafter, multiple resistances marked near $24.90-80 since September 2021 will challenge silver buyers before guiding them to the 2021 top of $25.40.

Overall, silver prices remain vulnerable to further downside, but the 10-DMA and the 2-week support line could limit the near-term declines in the price.

Silver: daily chart

Trend: Further weakness expected

Comments are closed.