. Silver Price Analysis: XAG/USD struggles with key $24.60-$50

Silver Price Analysis: XAG/USD struggles with key $24.60-$50 support area

Silver Price Analysis: XAG/USD struggles with key $24.60-$50 support area

11 May 2023

Silver Price Analysis: XAG/USD struggles with key $24.60-$50 support area

Silver prices remain under pressure as bears attack the 21-DMA, a two-month rising support line. 

Falling MACD signals, RSI pullback from overbought areas indicate further downside.

Several levels noted since early 2023 highlight $24.60-$50 as a major downside for XAG/USD.

Silver (XAG/USD) remains near $24.30 early Thursday in Europe after a two-day losing streak. 

In doing so, the light metal not only extends the previous day’s reversal from the week’s high, but also produces a key support zone of $25.30-$25, which includes the 21-DMA and the uptrend line from early March. 

Given the bearish MACD signals and the retreat of the RSI (14) line from overbought territory, silver remains on the bear’s radar. 

However, a daily close below the $25.25 level is necessary for XAG/USD sellers to regain control.

 Regardless, the horizontal range, made up of several levels marked from early January around $24.60 to $50, looks like a tough nut to crack for the silver bears before they take control. 

On the contrary, the round number of $26.00 protects the immediate recovery of the price of silver before the maximum of $26.15 of the year.

If XAG/USD holds firmer above $26.15, the April 2022 high around $26.25 could be the last refuge for silver bears, a break of which could quickly take the bullion to last year’s high around $26.95. The round number of $27.00 also acts as an upward filter.

Silver price: Daily chart