Silver Price Analysis: 50-dma Tests Xag/usd Bears Around $23.50

Silver Price Analysis: 50-dma Tests Xag/usd Bears Around $23.50

  • Trade Ideas
  • Commodities
  • 2021, 24 November

Brief:

  • Silver holds onto corrective pullback around monthly low.
  • Descending Momentum line, sustained break of two-month-old support favor sellers.
  • 100, 200-DMA add to the upside filters, nears eye 23.6% Fibonacci retracement level.

Silver (XAG/USD) pares intraday losses around $23.60 during early European morning on Wednesday.

The bright metal bounces off 50-DMA but the rebound fails to battle the bears amid a downward sloping Momentum line and a sustained break of an ascending support line from late September, now resistance around $24.00.

In addition to the stated support-turned-resistance, the 100-DMA also increases the importance of the $24.00 threshold for silver buyers.

In a case where the bullion rises past $24.00, 50% Fibonacci retracement (Fibo.) of May-September declines and 200-DMA, respectively around $25.10 and $25.30, will gain the market’s attention.

Meanwhile, a daily closing below the 50-DMA level of $23.53 becomes necessary for the commodity bears to challenge the 23.6% Fibo. support near $23.15 and multiple rest-points close to the $22.90-80.

During the quote’s weakness past $22.80, the $22.15 and the $22.00 levels may entertain the XAG/USD bears before directing them to the yearly bottom of $21.42.

Suggestion:

Buy above 23.35 for 23.82 and 23.97

Else

Sell below 23.35 for 23.24 and 23.10

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