Silver Price Analysis: XAG/USD pullbacks as evening star emerges, suggesting further downside
- XAG/USD dips 1.13% to $24.00, supported by 50-day and 20-day EMA.
- RSI and three-day RoC indicators suggest a downward trend.
- Support and resistance at $23.51 and $24.52, respectively; $25.00 remains crucial.
Silver price retreats as it forms a three-candlestick pattern “evening-star” at around $24.00, though cushioned by the presence of the 50-day Exponential Moving Average (EMA) at $23.89, ahead of the 20-day EMA at $23.83. At the time of writing, the XAG/USD is trading at $24.00, below its opening price by 1.13%.
XAG/USD Price Analysis: Technical outlook
From a daily chart perspective, the XAG/USD is neutral to downward tilted, as the pair remained well below the May 11 high of $25.47. Even though support levels lie at around the $23.83/89 area, the Relative Strength Index (RSI) indicator aims downward, warranting further downside. The three-day Rate of Change (RoC) also portrays buying pressure waning. That said, the XAG/USD pullback could extend further.
The XAG/USD next support would be the 100-day EMA at $23.51, followed by June 8 daily low at $23.41, ahead of testing the 200-day EMA at $22.91. Conversely, the XAG/USD first resistance would be June 9 at $24.52, followed by the $25.00 figure.