Silver Price Analysis: XAG/USD rebound flirts with $21.00 but bears stay hopeful
|- Silver portrays corrective pullback after refreshing eight-day low.
- Clear break of six-week-old ascending trend line joins impending bear cross on MACD to favor sellers.
- 10-DMA, three-week-old descending trend line adds to the upside filters.
Silver (XAG/USD) regains $21.00 amid a corrective pullback near the weekly low. Even so, the bright metal keeps the downside break of the previous key support line during Friday’s Asian session.
In addition to the support-turned-resistance from mid-May, around $21.10, a looming bear cross on the MACD and downbeat RSI also hint at the quote’s further downside.
Even if the XAG/USD manages to cross the $21.10 hurdle, the 10-DMA and a downward sloping trend line from May 06 could challenge the buyers around $21.40 and $21.75.
It’s worth noting, however, that the metal’s run-up beyond $21.75 enables it to rally towards the monthly high of $22.51.
On the flip side, the monthly low near $20.90 appears to be the immediate support for the silver traders to watch ahead of targeting the yearly bottom surrounding $20.45.
Following that, the $20.00 psychological manget could entertain XAG/USD bears before directing them to the 61.8% Fibonacci Expansion (FE) of the metal’s moves during late April to early June, around $19.40.
Overall, the metal’s rebound appears less convincing until the prices stay below $21.75.
Silver: Daily chart
Trend: Further downside expected
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