Silver Price Analysis: Oversold RSI tests XAG/USD bears at three-month low under $21.00
- Silver price remains pressured at the lowest levels in three months.
- RSI conditions limit immediate downside near three-week-old descending trend line.
- Descending megaphone formation suggests more volatility towards the south.
- Recovery remains elusive unless crossing 100-SMA.
Silver price (XAG/USD) takes offers to reverse the week-start corrective bounce off the three-month low during the mid-Asian session on Monday. In doing so, the bright metal pokes the key $20.75-70 zone, the lowest since late November 2022, as the oversold RSI (14) probes the quote’s further downside.
However, a downward-sloping megaphone trend-widening chart formation, stretching from early February, joins the bearish MACD signals to keep XAG/USD sellers hopeful.
That said, the bullion’s further downside could aim for the November 21, 2022 swing low of $20.58 before challenging the stated megaphone’s lower line, close to $20.55 at the latest.
Though, the RSI conditions and the aforementioned $20.55 trend line support may restrict the commodity’s further downside.
Alternatively, a three-day-old descending resistance line, near $21.00, restricts immediate recovery moves of the Silver price.
Following that, the stated megaphone’s top line, around $21.80 by the press time, could challenge the XAG/USD buyers.
It’s worth noting, however, that the metal’s upside remains doubtful unless crossing the 100-SMA level surrounding $21.90.
Also acting as an upside filter is the previous weekly top of near $22.00, a break of which could direct the buyers towards the November 2022 high of $22.25.
Overall, the Silver price remains bearish but the downside appears limited amid oversold RSI conditions.
Silver price: Four-hour chart
Trend: Further downside 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.
