- Silver plunges below 100-day SMA, accelerating selloff toward six-week lows.
- RSI dives toward oversold territory, signaling strong bearish momentum persists.
- Recovery requires reclaiming $70.00 and 100-day SMA to stabilize prices.
Silver price (XAG/USD) retreats late in the North American session, down by over 6.80% in the day, poised to finish the week with losses of more than 15.70%, posting its second-largest weekly loss since the one that ended down 17.39% on January 30. At the time of writing, XAG/USD trades at $67.89.
XAG/USD Price Forecast: Technical Outlook
Although turned bearish this week, Silver remains upward biased as long as the bulls keep spot prices above the February 6 swing low of $64.10. In the short term, XAG/USD turned negative after falling below the 100-day SMA at $72.55, which exacerbated a drop below $70.00, towards a six-week low of $65.52.
Nevertheless, in the medium term, the market structure has respected the successive series of higher lows and higher highs, keeping the bulls in the driver’s seat.
Momentum notably favours sellers, as evidenced by the Relative Strength Index (RSI), which pierced its neutral level and fell sharply toward oversold territory. A drop below the RSI’s 30 level and a quick jump back above it could open the door to form a bottom, IF the RSI consolidates steadily, registering higher peaks and troughs.
For a bull market recovery, XAG/USD needs to reclaim $70.00 and the 100-day SMA. Once surpassed, the next stop is the cycle low-turned-resistance at $77.98, the March 3 daily low.
XAG/USD Price Chart – Daily
