Silver Price Analysis: Mildly offered between previous support and 78.6% Fibo.
- Silver prints seven-day downtrend, remains pressured around three-week low.
- 78.6% Fibonacci retracement level tests bears targeting monthly low, 50-DMA adds to the upside filters.
- The sluggish Momentum line hints at further grinding at the multi-day bottom.
Silver (XAG/USD) remains on the back foot around $22.40, down 0.10% intraday during Monday’s Asian session.
In doing so, the bright metal remains pressured near the monthly low while staying between the previous support line from December 15 and the 78.6% Fibonacci retracement (Fibo.) of September-November upside.
It should be noted, however, that the downbeat Momentum and sustained trading below 50-DMA keep bears hopeful to refresh the monthly low, currently around $21.95.
Following that, the double bottoms marked in 2021 surrounding $21.42 will be crucial to watch.
Meanwhile, corrective pullback needs to cross the aforementioned support-turned-resistance line near $22.50 to aim for the 50-DMA level of $22.85.
During the XAG/USD upside past $2.85, the $23.00 threshold will test the buyers before directing them to the 50% Fibo. level near $23.41.
Silver: Daily chart
Trend: Further weakness expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
