Silver Price Analysis: XAG/USD rally stalls at around 200-DMA, bears eye $22.00
- XAG/USD trades at around $22.85, a modest gain of 0.29%.
- Supports are identified at the psychological level of $22.50, the 50-DMA at $22.85, and the 20-DMA at $22.21.
- Immediate resistance lies at the 200-DMA at $23.31, with a key hurdle at the recent cycle high of $23.76.
Silver price (XAG/USD) clings to gains although US Treasury bond yields continued to rise. However, the white-metal, failed to reclaim the 200-day moving average (DMA), leaving Silver exposed to selling pressure, but at the time of writing, exchanges hands at $22.85, gaining 0.29%.
The daily chart portrays XAG/USD as neutral-downward biased, as the market structure registers lower highs and lower lows. Even though Silver has rallied from around October lows of $20.65, the ongoing rally is an impulse, which needs to clear the latest cycle high of $23.76. to pave the way for a bullish resumption.
Consequently, as XAG/USD’s downtrend remains in place, the current uptrend offers sellers a better entry price. Silver’s first support would be the psychological $22.50 figure after the white metal dropped below the 50=DMA at $22.85. Once those two areas are cleared, the next support would emerge at the 20-DMA at $22.21, followed by the $22.00 mark. Conversely, if XAG/USD climbs past the $23.00 figure, a challenge on the 200-DMA at $23.31 is on the cards.
XAG/USD Price Action – Daily chart
XAG/USD Technical Levels