In a relentless streak, Silver’s (XAG/USD) descent persisted for a seventh consecutive day, disregarding the prior day’s minor rebound from its fortnight low, now dwelling at $23.10 in the early hours of Thursday. This downturn not only echoes the bearish signals emanating from MACD indicators but also underscores a significant breach below the 200-day Exponential Moving Average (EMA).
Apart from these technical signals, a somber market sentiment and a resurgent US Dollar have provided ample encouragement to the XAG/USD bears.
Nevertheless, the RSI (14) gauge, resting below the 50.0 threshold, hints at a potential opportunity for commodity bottom-fishing. This, in turn, spotlights an ascending support line stemming from early March, with $22.60 as its pivotal level of interest for the bearish camp.
It is crucial to emphasize that should the precious metal falter to stage a recovery from $22.60, it could expose itself to a trial of a year-long ascending trendline, lying in close proximity at $22.10. This, in turn, would be followed swiftly by the psychological barrier of $22.00.
In the unfortunate event of Silver Price persisting in its bearish trajectory below $22.00, the prospect of a gradual descent towards March’s nadir around $19.90 cannot be dismissed. During this likely descent, the XAG/USD sellers may find themselves grappling with the 50.0% and 61.8% Fibonacci ratios, spanning from September 2022 to May 2023, roughly situated at $21.85 and $20.80, respectively. Not to forget the psychological pull of $20.00 looming as a magnetic force.
On the flip side, a daily close above the 200-EMA hurdle at $23.25 should not be viewed as an immediate green light for Silver buyers. Multiple barriers around $24.00 and $24.20 could potentially challenge the Silver Price’s resurgence, before drawing attention to a critical resistance line extending from May, which currently resides at approximately $24.70.