[ad_1]
- Silver is constantly hovering around $ 23.75 waiting for a catalyst.
- Market sentiment mixed, but slightly subdued, triggered by the slowdown in the Chinese economy.
- XAG / USD daily and hourly charts support a bearish trend in white metal.
At the start of the New York session, XAG / USD hit a high of $ 23.91, but when the New York stock market opened, the white metal pulled back the move, which was trading at $ 23.79 at the time of writing, to a whopping 0, 27%.
Market sentiment remains mixed, but slightly pessimistic. During the Asian session, data showed that the Chinese economy continued to slow. China’s retail sales rose 2.5% from 7% analysts forecast. It was a major failure caused by lockdown measures being carried out in the country amid a Delta Variant outbreak. In addition, major European stock indices closed down in line with Asian markets weighted by Chinese data, while three out of four US stock indices posted gains between 0.37% and 0.40%.
Technical outlook
Daily chart
XAG / USD is still trading below the lower trendline of a bearish flag, holding the downtrend intact. Additionally, the daily moving averages are above the spot price and cap around $ 24.00. That said, silver has traded within the $ 23.37-96 range for the past three sessions. A daily break below $ 23.37 will open the door for further losses towards the 2021 low of around $ 22.10.
The Relative Strength Index stands at 44.03 and is moving down, which is helping the downtrend.
1 hour chart
As one approaches the 1-hour chart, XAG / USD trades between the 100 and 50 simple moving average (SMA), trading at $ 23.84 and $ 23.76, respectively. The longer one, the 200 SMA, rose at $ 24.10, confirming the bearish trend. A break below $ 23.66 could propel prices toward the September 13 lows of $ 23.37. A sustained break in this support level will pave the way to the August 20th swing lows around $ 22.87.
On the flip side, a break above the 100 SMA will push price toward a key resistance area around $ 24.00, which will be surpassed by the 200 SMA at $ 24.10.
The Relative Strength Index is around 46.94 and is on the downside, which supports the bearish trend.
[ad_2]
