Image Source: Pixabay
Silver price failed to extend its gains on Wednesday and lost over 1% as US Treasury yields rose following a US 5-year Note auction. The XAG/USD trades at $28.83, finally achieving a daily close beneath $29.00, opening the door for further downside.
XAG/USD Price Analysis: Technical outlook
From a technical perspective, the XAG/USD dropped beneath $29.00 and is set to extend its losses past the June 26 low of $28.57. Momentum shows that sellers are in charge as the Relative Strength Index (RSI) accelerates to the downside, remaining bearish and with enough room before turning oversold.That said, the path of least resistance is to the downside. The XAG/USD’s first support would be the 100-day moving average (DMA) at $28.43. Once cleared, the next stop would be the psychological area at $28.00 before edging towards the latest cycle low seen at $26.02, the May 2 low.Conversely, the grey metal could test higher prices if XAG/USD rallies past the $29.00 mark. The first resistance would be the July 22 high of $29.42. Once surpasses, the next stop is seen above the July 19 peak at $29.83. Further upside is anticipated above that level, with the $30.00 mark lying overhead.
XAG/USD Price Action – Daily Chart
More By This Author:USD/JPY Price Analysis: Plummets Below Ichimoku-Cloud, Eyes Further Downside Gold Price Falls Below Key Support As US Yields Climb Silver Price Analysis: XAG/USD Plummeted More Than 2% And Dropped Below $29.50
