Silver Price Analysis: XAG/USD bounces off $22.30-25 support confluence
- Silver price pares the biggest daily loss in a year with mild gains.
- Convergence of 100-EMA, 50% Fibonacci retracement level probes bears.
- Downbeat RSI, failure to break key support tease short-term XAG/USD buyers.
- Bulls need to cross 61.8% Fibonacci retracement to retake control.
Silver price (XAG/USD) remains on the recovery mode as it prints mild gains around $22.40 during early Monday morning in Asia. In doing so, the bright metal pares the biggest daily loss in a year at the lowest levels in two months.
The 100-day Exponential Moving Average (EMA) joins the 50% Fibonacci retracement level of the metal’s March-September 2022 downturn to highlight the $22.30-25 support confluence that recently triggered the XAG/USD rebound.
Adding strength to the recovery moves is the downbeat RSI (14) that challenges Silver bears.
However, bearish MACD signals join the quote’s sustained downside break of the 61.8% Fibonacci retracement level surrounding $23.40, also known as the golden level, which keeps the Silver bears hopeful.
Even if the XAG/USD manages to cross the $23.40 hurdle, a one-month-old horizontal resistance area around $24.55-65 will be crucial for the bulls to cross to retake control.
Alternatively, a downside break of the $22.30-25 support confluence has another chance of pushing back the Silver bears in the form of the 200-EMA, close to $21.95 by the press time.
In a case where XAG/USD remains bearish past $21.95, the previous resistance line from the last March, near $20.80, will be in focus.
Silver price: Daily chart
Trend: Recovery expected