XAG / USD struggles at $ 24.00, bears look at $ 23.50

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  • Silver is constantly hovering around $ 23.75, waiting for a catalyst.
  • Mixed market sentiment, but slightly pessimistic, triggered by the slowdown in the Chinese economy.
  • XAG / USD daily and hourly charts support a bearish bias in the white metal.

At the beginning of the New York session, the XAG / USD It peaked at $ 23.91 but, when the New York Stock Market opened, the white metal pulled back, trading at $ 23.79 down 0.27% at the time of writing.

Market sentiment remains mixed but slightly pessimistic. During the Asian session, data showed that the Chinese economy continues to slow down. China’s retail sales rose 2.5% compared to the 7% forecast by analysts. It was a major failure caused by lockdown measures implemented in the country amid an outbreak of the Delta variant. Furthermore, major European stock indices ended up with losses in line with Asian markets, weighed by Chinese data, while three out of four US stock indices posted gains between 0.37% and 0.40%.

technical perspective

Daily chart

XAG / USD is still trading below the lower trend line of a bearish flag, keeping the downtrend intact. Also, the daily moving averages are above the spot price, putting a cap around $ 24.00. However, silver has been trading within the $ 23.37-96 range for the past three sessions. A daily break below $ 23.37 will open the door for further losses, towards the 2021 low around $ 22.10.

The Relative Strength Index is at 44.03 and heading lower, supporting the downtrend.

1 hour chart

Zooming in on the 1-hour chart, the XAG / USD is trading between the 100 and 50 Simple Moving Average (SMA), and stands at $ 23.84 and $ 23.76, respectively. The longest, the 200-SMA rises to $ 24.10, confirming the bearish bias. A break below $ 23.66 could push prices towards September 13 lows around $ 23.37. A sustained breakout of that support level will pave the way towards the August 20 lows around $ 22.87.

On the other hand, a breakout above the 100 SMA will push the price towards a key resistance area around $ 24.00, limited by the 200 SMA at $ 24.10.

The Relative Strength Index is around 46.94 in the downside direction, supporting the downside bias.

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