- The silver price extends its losses to four consecutive days after dipping below the 200 DMA.
- Silver Price Analysis: A Bearish Continuation Likely, Although RSI Is Oversold; caution is advised.
the price of silver fell to a new all-time low of $20.58 a troy ounce, but has pared some of its losses. Despite the weakness of the dollar and the decline in US bond yields, the white metal loses 0.14%. At the time of writing these lines, XAG/USD is trading at $20.72.
From a daily chart perspective, XAG/USD shows a bearish bias. Furthermore, the 20 day EMA is about to cross below the 200 day EMA, which would trigger a deadly cross and compound the slide towards the next demand zone, the daily low on November 3rd. from $18.84. A break of the latter would open the door for further declines, exposing crucial support areas. Critical support zones exposed would be the October 14 low at $18.09, followed by the September 28 low at $17.97, before last year’s low at $17.56.
Although the path of least resistance is to the downside, the RSI in oversold conditions could trigger a consolidation before the bearish continuation.
As an alternative scenario, the first resistance for XAG/USD would be the psychological figure of $21.00. Once recovered, the bulls could push prices towards the February 24 high of $21.39, followed by the February 23 daily high of $21.67. Next, the intersection of the 20/200 day EMAs would be tested, around $21.90.
XAG/USD Daily Chart
XAG/USD Key Technical Levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
