Silver Price Analysis: XAG/USD fades bounce off three-week-old support near $20.00
|- Silver price prints mild gains as it reverses from four-month low.
- Short-term descending support line, oversold RSI adds strength to recovery.
- Doji candlestick, 100-DMA challenge XAG/USD buyers amid sluggish moves.
Silver price (XAG/USD) picks up bids to rebound from the Year-To-Date (YTD) lows while printing mild gains around $20.00, up 0.18% intraday heading into Thursday’s European session.
In doing so, the bright metal bounces off a three-week-old descending support line, around $19.80 by the press time, amid an oversold RSI (14).
The XAG/USD rebound, however, appears elusive unless the quote stays below the previous day’s top surrounding $20.22.
That said, a clear upside break of $20.22 will defy the bearish candlestick formation and can propel the Silver price toward a late February swing low surrounding $20.45.
It’s worth noting, though, that the XAG/USD run-up beyond $20.45 needs validation from the $21.00 round figure and the 100-SMA hurdle of $21.15 to convince the buyers.
Meanwhile, pullback moves may retest the aforementioned support line, near $19.80. Following that, the $19.00 and November 2022 low surrounding $18.85 may entertain the Silver traders.
In a case where the XAG/USD bears keep the reins past $18.85, the previous yearly low surrounding $17.75, marked in September 2022, will be in focus.
Overall, the Silver bears appear running out of steam but the bulls have a long way to go before retaking control.
Silver price: Four-hour chart
Trend: Further downside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.