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    Silver Price Analysis: XAG/USD tumbles as bearish engulfing pattern looms

    FXStreet
    Updated Mar 22, 2024 01:59
    Mitrade

    Silver prices see a significant drop to $24.75, shedding over 3% in response to a strengthening US Dollar.


    Technical analysis reveals a bearish engulfing pattern, despite a recent 'golden cross', signaling mixed signals for traders.


    The RSI indicates diminishing buying pressure, hinting at a potential bearish swing.


    Silver's price plunged on Thursday amidst a risk-off impulse, reinvigorating the US Dollar. Consequently, the grey metal dropped more than $0.70, or 3.15%, as the XAG/USD traded at $24.75 after hitting a daily high of $25.77.


    XAG/USD Price Analysis: Technical outlook


    Silver is witnessing a downturn, as price action has formed a ‘bearish engulfing’ chart pattern in the last couple of days. Even though the 50-day moving average (DMA) has crossed above the 200-DMA, forming a classic ‘golden cross’ indicating that bulls are gathering steam, momentum suggests the opposite.


    The Relative Strength Index (RSI) is hovering just below 60 after peaking around 70, indicating that moderate buying pressure remains. However, the RSI's descent from higher levels suggests that momentum might wane, and bears could gain ground.


    The recent pullback has seen the price retreat from resistance near the $26.00 mark. Immediate support is found near December’s 22 high turned support at $24.60, followed by the $24.00 level. A breach of the latter could open a path towards the $23.00 area, marked by the previous cycle lows.


    On the other hand, an XAG/USD daily close above $25.00 could pave the way for challenging yearly highs at $25.77, followed by last year’s high at $25.91.



    XAG/USD Price Action – Daily Chart,from TradingView


    XAG/USD

    Overview
    Today last price 24.76
    Today Daily Change -0.82
    Today Daily Change % -3.21
    Today daily open 25.58
     
    Trends
    Daily SMA20 23.93
    Daily SMA50 23.22
    Daily SMA100 23.44
    Daily SMA200 23.33
     
    Levels
    Previous Daily High 25.64
    Previous Daily Low 24.75
    Previous Weekly High 25.45
    Previous Weekly Low 24.01
    Previous Monthly High 23.5
    Previous Monthly Low 21.93
    Daily Fibonacci 38.2% 25.3
    Daily Fibonacci 61.8% 25.09
    Daily Pivot Point S1 25
    Daily Pivot Point S2 24.43
    Daily Pivot Point S3 24.11
    Daily Pivot Point R1 25.9
    Daily Pivot Point R2 26.22
    Daily Pivot Point R3 26.79

    * The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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