• Silver price stumbles below the 200-day EMA at $21.95, shifting its bias to neutral-downwards.
• XAG/USD Price Analysis: Shifted neutral-to-downwards, though two more closes below the 200-DMA would cement its downward bias.

Silver price continues to trade beneath the bottom-trendline of a megaphone formation and below the 200-day Exponential Moving Average (EMA) at 21.95, a bearish signal for the white metal. It should be said that a daily close below the latter would pave the way for further downside. At the time of writing, XAG/USD exchanges hands at $21.84 a troy ounce after hitting a daily high of $22.03.

After dropping below the bottom-trendline of a megaphone formation, the XAG/USD has failed to regain the $22.50 mark and exposed the 200-day EMA. A daily close is needed to further cement a change on the neutral bias to neutral-downwards, and it will expose untested support areas since December of 2022.

If that scenario plays out, the XAG/USD first support would be the November 28 daily low of $20.87, followed by the November 21 swing low of $20.59. Once cleared, the psychological level of $20.00 would be up for grabs.

In an alternate scenario, the XAG/USD first resistance would be the 200-day EMA at $21.94, ahead of the $22.00 figure. Once broken, Silver could aim inside the megaphone formation, but firstly it needs to crack the bottom trendline at $22.20.

It should be said that oscillators like the Relative Strength Index (RSI) suggest a bearish continuation, but the Rate of Change (RoC), confirms that sellers are losing momentum. Hence, the XAG/USD might consolidate around the $21.60-$22.00 area, awaiting a fresh catalyst before determining its direction.

XAG/USD Daily chart

XAG/USD Key technical levels