- Silver prices remain on the back foot after Friday’s Doji.
- 50-HMA also restricts nearby downside, two-day-old resistance line holds the key to fresh run-up.
Silver (XAG/USD) justifies Friday’s bearish Doji by declining 0.30% intraday to $25.45 during Monday’s initial Asian session.
In addition to the trend reversal suggesting candlestick on the daily chart, a steady RSI line also backs downside momentum.
Silver: Daily chart
Trend: Further downside expected
That said, the bright metal currently drops towards the 50-HMA and one-week-old support line, respectively around $25.40 and $25.35 in that order.
However, any further weakness past $25.35 won’t hesitate to direct the XAG/USD bears towards the 200-HMA level of $25.15, a break of which will recall the $25.00 to the chart.
In a case where silver prices remain bearish past $25.00, the monthly low near $24.30 will be in focus.
Alternatively, a downward sloping trend line from Thursday, near $25.60 by the press time, guards the quote’s immediate upside.
Following that, the last week’s high of $25.85 and the $26.00 threshold will test the XAG/USD bulls.
Should silver bulls dominate beyond $26.00, the monthly high of $26.95, also the highest since June 2021, will be on their radars.
Silver: Hourly chart
Trend: Further weakness expected
Reprinted from FXStreet，the copyright all reserved by the original author.
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