Silver Price Analysis: XAG/USD bounces off multi-day-old previous resistance to defend $25.00
- Silver price clings to mild gains after recovering from three-week low.
- Bearish MACD signals join lower high and lower low formation to lure XAG/USD sellers.
- 10-DMA, one-week-old descending trend line restrict immediate upside.
- $21.20 holds the key for further Silver price downside.
Silver price (XAG/USD) remains defensive around $25.05 as bulls and bears jostle ahead of the key US data early Wednesday.
In doing so, the XAG/USD rebounds from an upward-sloping support line from early January, the previous resistance. Also putting a floor under the Silver price is the 21-DMA.
However, the lower high and lower low formation of the bright metal joins the bearish MACD signals to keep the Silver sellers hopeful.
Hence, the bullion price is likely to remain pressured and can decline further on breaking the aforementioned resistance-turned-support line, close to $24.90, at the latest.
It’s worth noting that the 21-DMA level surrounding $24.80 and multiple tops marked during early 2023 around $24.20 can act as additional downside filters to watch for the Silver sellers past $24.90.
Should the XAG/USD remains bearish past $24.20, the odds of witnessing a slump toward January’s low of $22.76 can’t be ruled out.
Alternatively, the 10-DMA level of $25.23 guards the immediate recovery of the Silver price.
Following that, a one-week-old descending resistance line, close to $25.35 by the press time, can act as the last defense of the XAG/USD bears.
In a case where the Silver price remains firmer past $25.35, a rally towards refreshing the Year-To-Date (YTD) top, currently around $26.10, can be anticipated.
Silver Price: Daily chart
Trend: Downside expected