Silver Price Analysis: XAG/USD bears approach $21.55 support during three-day fall
- Silver remains pressured around one-week low, down for third consecutive day.
- Clear downside break of one-month-old ascending trend line, 21-DMA favor sellers.
- Five-week-long horizontal resistance appears a tough nut to crack for bulls.
Silver (XAG/USD) stays depressed around the weekly low near $21.60 during Friday’s Asian session, after breaking the short-term key supports the previous day.
However, the bright metal’s further downside hinges on its ability to conquer a three-week-old upward sloping trend line, around $21.55 by the press time.
Given the downbeat RSI (14) and a clear break of the previously important support levels, namely the 21-DMA and an ascending trend line from May 13, XAG/USD is likely to extend the latest weakness below the immediate support.
In doing so, the quote could challenge the $21.30 and $21.00 supports before directing the bears towards the last monthly low near $20.45.
Meanwhile, recovery moves may initially be challenged by the 21-DMA and the support-turned-resistance line from early May, respectively around $21.85 and $22.00.
Following that, a horizontal area comprising multiple levels marked since early May and the 50-DMA, close to $22.40-50 and $23.00 in that order, will be crucial for the silver buyers to tackle.
Silver: Daily 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.
