Silver Price Analysis: XAG/USD down 1%, seeking key support level as buyers face resistance

• Silver is down more than 1%, struggling to stay above the confluence of the 50 and 20 day EMAs at $23.86/$92.
• The impossibility of breaking the swing low of April 29 increases the selling pressure; resistance at $24.20/$30 adds to the bearish pressure.
• The bearish RSI signal and weakening buying pressure suggest that the path of least resistance for XAG/USD is to the downside.

The price of the Silver It pulls back from last Friday’s highs of $24.20, more than 1%, as sellers try to push the XAG/USD price below the confluence of the 50 and 20 day EMAs around at $23.86/$92. At the time of writing these lines, the pair XAG/USD trades at $23.92.

XAG/USD Price Analysis: Technical Perspective

XAG/USD remains neutral to the downside after sliding past support at the April 29 low of $24.49, a price level tested four times last month. However, the inability of buyers to break that level exposed XAG/USD to selling pressure, as evidenced by price action on Monday, when silver ran into resistance on a downtrend line drawn from the highs of the year to date of $26.13 passing around the $24.20/$30 zone.

Also, the Relative Strength Indicator (RSI) is heading lower, about to break below the mid-50 line, a bearish sign, while the Three-Day Rate of Change (RoC) sees the latest rally, very below the last three days to the upside, suggesting that the buying pressure is fading.

Therefore, the path of least resistance for XAG/USD is to the downside. The first support would be the confluence of the 50 and 20 day EMAs in the $23.86/$92 range. A break of the latter would expose the 100 day EMA at $23.55, followed by the $23.00 figure before the 200 day EMA at $22.96. Conversely, the first resistance for XAG/USD would be the $24.00 threshold, before the April 29 low turned into resistance around $24.49.

XAG/USD Price Action – Daily Chart