Silver Price Analysis: XAG/USD’s uptrend capped at the 200-DMA, retraced back below $21.80
- Silver spot price climbed on Monday, though the 200-DMA capped its uptrend.
- XAG/USD Price Analysis: The most likely scenario is downwards, with solid resistance from $21.90 and beyond.
Silver price registered gains on Monday amidst thin liquidity conditions due to a US holiday. However, its rally was capped at a technical juncture, with the important 200-day Exponential Moving Average (EMA) rejecting higher prices for the white metal. Consequently, the XAG/USD retreated and settled at around $21.79 a troy ounce at the time of typing.
The XAG/USD daily chart portrays a large area of resistance resting above Silver’s spot price, led by the 200-day EMA at $21.93, followed by the 100, 20, and 50-day EMAs, each at $22.21, $22.36, and $22.64, respectively. Hence, the XAG/USD path of least resistance is downward biased. Still, the Relative Strength Index (RSI) turning flat at bearish territory, and the Rate of Change (RoC) almost neutral, suggests that bears are taking a respite before attacking the year’s lows.
Therefore, the XAG/USD first support would be the YTD low at $21.18. Once the white metal crosses the latter, it will expose the $21.00 figure, followed by the November 22 swing low at $20.87, and then the November 21 low at $20.59, ahead of the psychological $20.00 figure.
As an alternate scenario, if XAG’s bulls reclaim the 200-day EMA and the $22.00 mark, that would pave the way to retest the 100-day EMA.