Silver Price Analysis: XAG/USD bears attack $19.75 support confluence
- Silver prices remain pressured as sellers poke short-term key support.
- Bearish MACD signals, downbeat RSI line favor sellers.
- 200-SMA, previous resistance line from early June restricts immediate downside.
- Recovery moves need sustained break of $20.51 to lure buyers.
Silver price (XAG/USD) extends the previous day’s losses as bears approach the $19.75 key support during Wednesday‘s Asian session.
In doing so, the bright metal justifies the double-top bearish formation as it pokes the 200-SMA and a two-month-old previous resistance line. That said, the bearish MACD signals and downward sloping RSI, not oversold, also favors the metal sellers.
With this, the XAG/USD bears are likely to break the $19.75 immediate support, which in turn could direct the quote towards the monthly horizontal support area near $19.50-40.
In a case where silver sellers dominate past $19.40, the $19.00 and the $18.70 mark may offer an intermediate halt during the anticipated south-run targeting the yearly low near $18.15.
Alternatively, recovery moves remain elusive until the quote stays below the $20.51 horizontal hurdle, also the double-top area.
Following that, an upward trajectory towards the 61.8% Fibonacci retracement of the June-July downturn, near $20.85, can’t be ruled out.
However, the XAG/USD upside past $20.85 hinges on its ability to stay firmer beyond June 27 swing high near $21.55.
Silver: Four-hour 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.
