Silver Price Analysis: XAG/USD bears approach six-week-old support near $21.00
|- Silver remains pressured around intraday low, extending the week-start pullback from 21-DMA.
- Steady RSI hints at the metal’s further downside towards an ascending support line from mid-May.
- Convergence of 21-DMA, 13-day-old resistance line and 23.6% Fibonacci retracement level appears a tough nut to crack for bulls.
Silver (XAG/USD) stays on the back foot for the second consecutive day, taking offers at around $21.35, during Thursday‘s Asian session.
In doing so, the bright metal extends the recent pullback amid failures to cross the short-term key hurdles. Also keeping sellers hopeful is the steady RSI (14).
That said, the commodity prices drop towards an upward sloping support line from May 13, at $21.00 by the press time.
However, the monthly low of $20.89 and May’s bottom surrounding $20.45 will challenge the quote’s further declines ahead of highlighting the $20.00 psychological magnet for bears.
Alternatively, the 21-DMA, a two-week-old descending trend line and 23.6% Fibonacci retracement of the April-May downside together offer a strong resistance around $21.80-85.
Should the quote manage to rise past $21.85, an upward trajectory towards the 50-DMA and then to the monthly high, respectively around $22.40 and $22.50, can’t be ruled out.
Overall, silver prices are likely to witness further downside but the room to the south appears limited.
Silver: Daily chart
Trend: Further downside expected
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