Silver Price Analysis: XAG/USD bears cheer Monday’s Doji below 50-DMA to target $20.00
|- Silver extends the previous day’s pullback from monthly low, grinds lower of late.
- RSI retreat, bearish candlestick keep sellers hopeful below $20.50 DMA hurdle.
- The previous resistance line from April puts a floor under the prices.
Silver price (XAG/USD) holds lower ground near $20.25, down 0.56% intraday heading into Tuesday’s European session.
In doing so, the bright metal justifies the previous day’s Doji candlestick after failing to cross the 50-DMA.
Also keeping the XAG/USD bears hopeful is the RSI (14) line that appears to have lost the further upside momentum.
However, the 23.6% Fibonacci retracement of the April-July downside, near $20.00, could restrict the quote’s immediate downside ahead of the resistance-turned-support line from April 18, close to $19.15 at the latest.
Should the commodity price drop below $19.15, the yearly low of $18.14 marked in July will regain the market’s attention.
On the contrary, recovery remains elusive until staying beyond the 50-DMA level surrounding $20.50.
Following that, the mid-June swing low near $20.90 and the $21.00 threshold may entertain silver buyers ahead of the highlighting the $22.15-20 resistance confluence including the 100-DMA and 50% Fibonacci retracement level.
To sum up, XAG/USD remains on the bear’s radar and can refresh yearly low but the south-run appears bumpy.
Silver: Daily chart
Trend: Further downside expected
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