- Silver price is on a 4-day losing streak.
- Bears are running out of steam near the overbought RSI.
- The 100 and 200-day SMAs could serve as support and resistance levels during the sideways trading period.
Silver (XAG/USD) is trading down 0.57% at $22.93 at the time of writing, after bottoming out at a low of $22.75 during the early Asian session. The price of the precious metal is trading in the red for the fourth straight day and buyers should not ignore this technical indicator on a daily basis. diagram approaching oversold conditions.
That said, the Relative Strength Index (RSI) is just above the overbought threshold, while the Moving Average Convergence Divergence (MACD) has been in the negative since mid-April, suggesting a technical correction may be on the horizon.
Furthermore, XAG/USD lost its 100-day simple moving average (SMA) for the first time since March and now has the latest support at the 200-day SMA at $22.01. So, considering the possibility of an upward correction, the price can use the mentioned moving averages as support and resistance to consolidate losses and subsequently enter a sideways trading period.