Silver Price Analysis: XAG/USD retreats from $21.25 resistance confluence
|- Silver fades Friday’s corrective pullback from six-week low.
- Convergence of the 61.8% Fibonacci retracement, 20-SMA challenges the buyers.
- Monthly bearish channel joins steady RSI to keep sellers hopeful.
Silver (XAG/USD) prices remain pressured around a 1.5-month low as sellers attack the $21.00 threshold during Monday’s Asian session.
In doing so, the brighter metal pulls back from a convergence of the 61.8% Fibonacci retracement of May 13 to June 06 upside, as well as the 20-SMA, around $21.25.
Also keeping the sellers hopeful is the metal’s failure to cross a weekly resistance line, around $21.25 by the press time, not to forget the downward sloping trend channel from June 01.
That said, the XAG/USD bears may aim for the $21.00 as immediate support ahead of the yearly low near $2.45.
Following that, the stated channel’s lower line, near $20.40, precedes the $20.00 psychological magnet to lure the sellers.
Alternatively, a clear upside break of the $21.25 resistance confluence guards the short-term upside momentum of the silver prices.
Even if the bullion rises past $21.25, the aforementioned channel’s resistance line, at $21.60 by the press time, will be crucial for the short-term XAG/USD buyers as a break of which could direct the advances towards the monthly high near $22.50.
Silver: Four-hour chart
Trend: Bearish
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.