Silver prices have been at the mercy of the 200-day Exponential Moving Average (EMA) for the past few days. On Wednesday, the white metal failed to break through the key resistance level, and instead retraced towards Tuesday’s lows. At the time of writing, XAG/USD is trading at $21.62, down 0.70% in the day.
From a daily chart perspective, the XAG/USD remains neutral to downward biased, as the white metal stays beneath the important 200-day EMA. Wednesday’s price action remains negative, while the Relative Strength Index (RSI) and the Rate of Change (RoC) indicate that sellers are gathering momentum.
The XAG/USD 4-hour chart portrays the white metal as neutral to downward on an intraday bias. As of typing, Silver has breached the daily pivot point at $21.81, followed by the S1 pivot at $21.66. A bearish continuation is the most probable scenario due to several reasons. The Relative Strength Index (RSI) dived below the 50-mid line, a signal to go short, while the Rate of Change (RoC) is aiming aggressively downwards.
Therefore, the XAG/USD first support would be the S2 pivot point at $21.50. If the white metal dives below this key level, a test of the YTD low at $21.18 is on the cards. On the other hand, if XAG/USD reclaims the 200-day EMA, it could pave the way towards $22.00.
Looking at the XAG/USD 4-hour chart, the white metal is trading in a narrow range, with immediate resistance at $21.81, followed by the 200-day EMA at $21.93. On the downside, the first support is located at the S2 daily pivot at $21.50, followed by the S3 pivot at $21.35 and the YTD low of $21.18.
In conclusion, Silver price is battling at the 200-day EMA, though it failed to break through the key resistance level and retraced towards Tuesday’s lows. Oscillators turned bearish, opening the door for XAG/USD’s further downside. If the white metal dives below $21.50, a test of the YTD low at $21.18 is on the cards. On the other hand, if XAG/USD reclaims the 200-day EMA, it could pave the way towards $22.00.
