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.

Anil Panchal FXStreet

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

Additional important levels

Overview
Today last price	20.78
Today Daily Change	0.02
Today Daily Change %	0.10%
Today daily open	20.76

Trends
Daily SMA20	22.2
Daily SMA50	23.14
Daily SMA100	22.02
Daily SMA200	21.01

Levels
Previous Daily High	21.4
Previous Daily Low	20.74
Previous Weekly High	21.98
Previous Weekly Low	20.74
Previous Monthly High	24.55
Previous Monthly Low	22.76
Daily Fibonacci 38.2%	20.99
Daily Fibonacci 61.8%	21.15
Daily Pivot Point S1	20.53
Daily Pivot Point S2	20.31
Daily Pivot Point S3	19.87
Daily Pivot Point R1	21.2
Daily Pivot Point R2	21.63
Daily Pivot Point R3	21.86

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.

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