Silver Price Analysis: XAG/USD tanks over 3%, breaks key support levels as bears eye $23.00
- XAG/USD confirms a downtrend by breaking below 200, 100, and 50-day moving averages.
- Downtrend signals potential testing of November 13 swing low at $21.88 unless buyers intervene to lift the spot price.
- On the upside, buyers must reclaim $23.00 to challenge and surpass broken DMAs, potentially targeting $24.00.
Silver price is collapsing more than 3% in the day, breaking key support levels on its way south, set to finish the week with losses of more than 9.50%. At the time of writing, XAG/USD is trading at $22.97 after hitting a daily high of $23.89.
XAG/USD’s daily chart confirms the grey metal’s downtrend after breaching the 200, 100, and 50-day moving averages (DMAs), each at $23,49, $23.24, and $23.06. That said unless buyers lift the spot price, that would set the stage for a test of the November 13 swing low of $21.88.
Firstly, XAG/USD sellers must drag prices below a support trendline that passes at around $22.69. Once cleared, the next stop would be $22.00, ahead of the November 13 daily low mentioned above.
Conversely, if Silver buyers reclaim the $23.00 figure, that could pave the way for reclaiming each DMA previously broken. Once those levels are cleared, up next would bet the $24.00 mark.