Silver (XAG) saw a slight increase in trading volume as US Treasury yields declined and the US dollar weakened overall.
On the downside, if the silver price falls below the 200-day exponential moving average at $22.93, it could further decline to the June 25th daily low of $22.68 and potentially drop to $22.11.
On the upside, staying above $23.00 could challenge the resistance levels at $23.35/41 (50/100-day exponential moving average convergence) and then target $24.00. Breaking through these resistances may test $24.20.
On Monday, the silver price climbed above $23.00, breaking the 20-day exponential moving average at $23.07, thanks to the decline in US bond yields and the weakness of the US dollar (USD). Silver traded at $23.12, closing up 0.32% during the US session.
Technical Analysis
Breaking below the 50-day and 100-day moving averages, silver remains neutral to bearish, oscillating between the 20-day moving average and the $23.00 zone. To continue its decline, silver must break below the 200-day moving average at $22.93, which would open the door for further downside and test the June 25th daily low of $22.68.
If a clear breakdown occurs, silver prices will slide and challenge the Mar. 16th daily low of $22.11, followed by a drop below $22.00. Once breached, the next support level will be the Nov. 28th daily low of $20.87, eventually reaching the annual low of $19.92.
On the other hand, if silver maintains above $23.00, it will test the resistance of the confluence of the 50-day and 100-day moving averages around $23.35-41. Breaking through this level, the next supply zone will be at $24.00, followed by the June 16th daily high of $24.20.
Silver Price Trend - Daily Chart
Source: TradingView
