XAG / USD struggles at $ 24.00, keeps eyes on $ 23.50
- Silver regularly hovers around $ 23.75, waiting for a catalyst.
- Mixed market sentiment, but slightly depressed, triggered by the deceleration of the Chinese economy.
- XAG / USD daily and hourly charts support a bearish bias in the white metal.
Earlier in the New York session, XAG / USD hit a high of $ 23.91 but as the New York stock market opened, the white metal fell to $ 23.79, down from 0 , 27% at time of writing.
Market sentiment remains mixed but slightly negative. During the Asian session, data showed that the Chinese economy continues to slow. China’s retail sales edged up 2.5% from 7% forecast by analysts. This was a huge breach caused by the lockdown measures implemented in the country amid a Delta variant outbreak. In addition, major European stock indices ended with losses in line with Asian markets, weighted by Chinese data, while three out of four US stock indices posted gains between 0.37% and 0.40%.
XAG / USD is still trading below the lower trendline of a bearish flag, keeping the bearish trend intact. Additionally, the daily moving averages are above the spot price, putting a cap around $ 24.00. Nonetheless, silver has traded in the $ 23.37-96 range over the past three sessions. A daily break below $ 23.37 will open the door for further losses, towards the 2021 low around $ 22.10.
The relative strength index is at 44.03 down, supporting the downtrend.
1 hour graph
Zooming in on the one-hour chart, XAG / USD is trading between the 100 simple moving average and 50 moving average (SMA), standing at $ 23.84 and $ 23.76 respectively. The longest, the 200-SMA is up to $ 24.10, confirming the bearish bias. A break below $ 23.66 could push prices toward the September 13 lows around $ 23.37. A sustained break out of this support level will pave the way to the August 20 lows around $ 22.87.
On the flip side, a break above the 100-SMA will push the price towards a key resistance area around $ 24.00 topped by the 200-SMA at $ 24.10.
The relative strength index is around 46.94 on the downside, supporting the downward bias.