Silver Price Analysis: XAG/USD extends pullback from 100-SMA below $24.00
- Silver refreshes intraday low, snaps two-day uptrend as RSI eases from nearly overbought conditions.
- Failures to cross the key SMA hurdle pulls the quote back below previous resistance line.
- Two-week-old horizontal support regains bear’s attention, key Fibonacci retracement levels, 200-SMA adds to the upside filters.
Silver (XAG/USD) takes offers around $23.70, down 0.60% intraday, during Wednesday’s Asian session.
The bright metal ticked up beyond an ascending trend line resistance from August 09 the previous day but RSI pullback and failures to cross the 100-SMA dragged the quote back below the previous resistance afterward.
Considering the recent downside sloping RSI line, coupled with the U-turn from the key SMA, silver may extend the latest weakness towards the mid $23.00s.
However, a horizontal line comprising lows marked since August 12, around $23.00, will challenge XAG/USD bears afterward.
It’s worth observing a clear downside past $23.00 will make the metal vulnerable to further declines towards the yearly low of $22.16.
Meanwhile, the nearby trend line and 100-SMA, respectively around $23.90-95, will precede the $24.00 threshold to restrict the commodity’s short-term upside.
Even if the silver prices manage to cross the $24.00 resistance, 50% and 61.8% Fibonacci retracement levels of August 04–08 downside, respectively around $24.10 and $24.55, will challenge the bulls before directing them to the 200-SMA key hurdle of $24.72.
Silver: Four-hour chart
Trend: Further weakness expected