Silver Designate Diagnosis: XAG/USD drops to over two-one year low, oversold RSI warrants warning for bears

Silver Designate Diagnosis: XAG/USD drops to over two-one year low, oversold RSI warrants warning for bears

  • Silver continues drifting lower for the fifth straight day and hits over a two-one year low on Thursday.
  • A convincing destroy and acceptance below the $18.00 stamp make stronger potentialities for extra losses.
  • A moderately oversold RSI (14) on the daily charts warrants warning for aggressive bearish traders.

Silver is prolonging a in the case of three-week-worn bearish pattern and shedding ground for the fifth successive day on Thursday. The downward trajectory extends by approach to the predominant half of the European session and drags the white metallic to the $17.65 keep of residing, or its lowest degree since June 2020.

Given the in a single day destroy by approach to the old YTD low, subsequent weak spot and acceptance below the $18.00 spherical settle favour bearish traders. That acknowledged, RSI (14) on the daily chart is already flashing oversold stipulations and makes it prudent to help for some near-term consolidation sooner than the next leg down.

On the other hand, the XAG/USD appears to be like poised to expand the bearish trajectory and goal in direction of checking out the $17.00 spherical-settle stamp. Some apply-by approach to selling has the seemingly to drag recount costs extra in direction of the next relevant make stronger near the $16.60-$16.50 horizontal zone.

On the flip side, any tried restoration may maybe maybe confront resistance and attract unique sellers near the $18.00 stamp. This, in turn, ought to serene cap the XAG/USD near the $18.15-$18.25 make stronger breakpoint, now grew to change into stiff barrier. The latter ought to serene now act as a pivotal point, which if cleared may maybe maybe trigger a short-conserving leap.

The XAG/USD may maybe maybe then plod up the transfer in direction of the $18.70-$18.75 intermediate resistance, above which bulls may maybe maybe goal to reclaim the $19.00 stamp. Some apply-by approach to buying will advocate that recount costs possess shaped a near-term backside and position the stage for some meaningful restoration within the near term.

Silver daily chart

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Technical phases to glance

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