- The path of least resistance for silver is down, according to the daily chart.
- Acceptance below the 200 day SMA support will trigger a new selloff.
- The RSI remains bearish, with the 21-day SMA acting as a strong obstacle to the upside.
Silver (XAG / USD) is stable for the second day in a row during the European session on Thursday, having tested the critical support of the 200-day moving average at $ 25.03 earlier in the Asian session.
The white metal managed to close above that level on Wednesday, although the break to the upside lacked conviction.
The 14-day RSI is moving apathetically below the midline, into bearish territory, leaving room for further declines.
XAG bears will look for a break below the strong support point of the 200-day SMA, below which a sharp decline towards the April 5 low of $ 24.61 cannot be ruled out.
Lower down, the psychological level of $ 24.00 could defend the slide towards the three-month lows of $ 23.78.
However, if the bulls maintain control above the crucial support mentioned above at $ 25.03, a bounce towards the horizontal 21-day SMA, now at $ 25.40, can be seen.
Higher up, the horizontal 100-day SMA at $ 25.67 is a powerful hurdle for the bulls.
Silver daily chart
Silver technical levels
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