- Silver takes out the $25 threshold as sellers look to extend control.
- A test of the bullish 200-DMA support at $24.68 seems inevitable.
- RSI remains below 50.00, pointing to more declines ahead.
Silver (XAG/USD) is nursing losses around the $25 level after the downward spiral seen so far this week.
The bears take a breather before resuming the downtrend, as the daily technical setup remains in their favor.
XAG/USD awaits a strong catalyst for the next leg towards the 200-day simple moving average (DMA), which is located at $24.68.
The next line of defense for the bulls would be seen at the January lows of $24.19. A break below which a sharp sell-off could be triggered, exposing the $23 round figure.
The 14-day Relative Strength Index (RSI) trades flat at 39.65, suggesting that the bearish bias remains well in place.
Further, Tuesday’s closing below the crucial 100-DMA at $25.63 adds credence to the downside bias.
Silver Price Chart: Daily
Alternatively, the XAG bulls need acceptance above the 100-DMA support now resistance to embark upon a meaningful recovery towards the $26 mark.
However, the path of least resistance appears southwards for the white metal in the near-term.
Silver Additional levels
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