Silver Price Analysis: XAG/USD refreshes YTD lows below $20.60
- Silver price prolongs its losses to four consecutive days after slumping below the 200-DMA.
- Silver Price Analysis: A bearish continuation is likely, even though RSI is oversold; caution is warranted.
Silver price dropped to a fresh YTD low of $20.58 a troy ounce but has trimmed some of its losses. Even though the US Dollar (USD) remains soft and the US bond yields are down, the white metal is losing 0.14%. At the time of writing, the XAG/USD exchanges hands at $20.72.
From a daily chart perspective, the XAG/USD is downward biased. Furthermore, the 20-day Exponential Moving Average (EMA) is about to cross below the 200-day EMA, triggering a death cross and exacerbating a fall toward the next demand area, the November 3 daily low of $18.84. A breach of the latter would open the door for further downside, exposing crucial support zones. The critical support areas exposed would be October’s 14 low of $18.09, followed by September’s 28 at 17.97, ahead of last year’s low at $17.56.
Even though the path of least resistance is downwards, the Relative Strength Index (RSI) at oversold conditions could trigger consolidation before the bearish continuation.
As an alternate scenario, the XAG/USD first resistance would be the psychological $21.00 figure. Once reclaimed, bulls could drive prices towards the February 24 high at $21.39, followed by February 23 daily high at 21.67. Next, the 20/200-day EMAs intersection would be tested, around $21.90s.