Silver Price Analysis: XAG/USD drops to $21.50 on ascending triangle breakdown

Silver extends Friday’s losses by breaking immediate bullish triangle.
RSI conditions, 100-HMA probe the further downside, weekly horizontal support also challenges bears.
Bulls need a clear break of $22.51 to retake control.

Anil Panchal FXStreet

Silver (XAG/USD) remains on the back foot for the second consecutive day, down 0.75% around the intraday low of $21.47, as bears cheer a technical breakout during early Monday. Also keeping sellers hopeful is the broad US dollar strength and the bright metal’s failure to cross the $22.00 hurdle.

However, the nearly oversold RSI conditions and the 100-HMA restrict immediate declines of the XAG/USD to around $21.50. Also acting as a downside filter is the one-week-old horizontal support near $21.35.

Should the quote drop below $21.35, the odds of witnessing a fresh monthly low, currently around $20.90, can’t be ruled out. The same highlights the yearly bottom marked in May, close to $20.45.

Meanwhile, the silver buyer’s return needs a clear upside break of the $22.00 hurdle. Though, the 200-HMA level of $21.65 and the aforementioned triangle’s lower line around $21.80 may restrict the immediate recovery of the metal.

In a case where the commodity prices rise beyond $22.00, the $22.30 and a monthly high of $22.51 may rest the XAG/USD bulls before giving them control.

Silver: Hourly chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	21.49
Today Daily Change	-0.18
Today Daily Change %	-0.83%
Today daily open	21.67

Trends
Daily SMA20	21.85
Daily SMA50	22.66
Daily SMA100	23.53
Daily SMA200	23.38

Levels
Previous Daily High	21.96
Previous Daily Low	21.58
Previous Weekly High	22.02
Previous Weekly Low	20.9
Previous Monthly High	23.28
Previous Monthly Low	20.46
Daily Fibonacci 38.2%	21.73
Daily Fibonacci 61.8%	21.82
Daily Pivot Point S1	21.51
Daily Pivot Point S2	21.35
Daily Pivot Point S3	21.13
Daily Pivot Point R1	21.89
Daily Pivot Point R2	22.12
Daily Pivot Point R3	22.28

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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