- Silver price licks its wounds at the lowest levels in six weeks.
- Daily closing below 50-DMA, bearish MACD signals keep XAG/USD sellers hopeful.
- 100-DMA, nearly oversold RSI (14) line can restrict Silver Price downside.
Silver price (XAG/USD) remains mildly bid around $23.75-80 as it pares the biggest daily loss in a week at a 1.5-month low, marked the previous day, amid early Wednesday in Europe.
Despite the latest inaction, or say a short-covering move, the XAG/USD remains on the bear’s radar as it keeps Tuesday’s closing breakdown of the 50-DMA. Adding strength to the Silver Price downside bias are the bearish MACD signals.
With this, the XAG/USD is well-set to drop test the 100-DMA support of near $23.40 before poking the 50% Fibonacci retracement level of its March-May upside, close to the $23.00 round figure.
It’s worth noting, however, that the RSI (14) line is near to the oversold territory and hence suggests bottom-picking of the XAG/USD around the aforementioned supports.
Should the Silver price drop below $23.00, the 61.8% Fibonacci retracement level, also known as the golden Fibonacci ratio, can challenge the XAG/USD bears near $22.30.
On the contrary, recovery moves need validation from the 50-DMA hurdle surrounding $24.10.
Even if the Silver price manages to provide a daily closing beyond $24.10, a horizontal area comprising levels marked since late March, around $24.20, can act as an extra filter towards the north before welcoming the XAG/USD bulls.
Following that, multiple levels marked during the April-May period, around $24.50-55, can act as the last defense of the XAG/USD bears.
Silver price: Daily chart
Trend: Limited downside expected
