Mar 16, 2023 13:51
As it consolidates the previous day's gains and extends a retracement from a five-week high, the silver price (XAG/USD) retests its intraday low near $21.70 early Thursday. In doing so, the precious metal represents the fourth consecutive day that it has failed to cross the convergence of the principal Exponential Moving Averages (EMAs).
In spite of this, the 50-EMA joins the 100-EMA and 200-EMA in highlighting the $21.80-$90 region as a difficult nut to break for Silver buyers.
Nonetheless, bullish MACD signals and an upward-sloping trend line from early September 2022 limit the immediate downside of the XAG / USD around $20.00.
Prior to that, the previous weekly highs of approximately $21.30 and $20.00 could entice the Silver bears.
In the event that the Silver price remains adverse beyond $20.00, a decline to the November 2022 low near $18.80 cannot be ruled out.
On the other hand, a daily close above $21.90 appears required for the XAG / USD investors to regain control.
Even so, the $22.00 threshold and January's low near $22.75 could present a challenge to Silver purchasers before they gain control.
Overall, the Silver price does not enter the buyer's radar until it surpasses $21.90. However, the negative appears to be limited as well.