Silver Price Analysis: XAG/USD extends pullback form 50-DMA towards $19.50
- Silver price remains pressured towards monthly horizontal support.
- RSI retreat, receding bullish bias of MACD also favor sellers.
- Bulls await successful trading beyond May’s low to retake control.
Silver price (XAG/USD) stays softer around $19.80, extending the previous week’s pullback from the 50-DMA amid Monday’s initial Asian session.
In addition to the failures to cross the 50-DMA, the recent retreat of the RSI (14) and the MACD’s failure to stay firmer also tease sellers.
However, a one-month-old horizontal area surrounding $19.50 appears to challenge the short-term XAG/USD bears.
In a case where the silver price remains weak past $19.50, the previous resistance line from April 18 and the yearly low marked in July, respectively around $18.60 and $18.15, will be important to watch.
Meanwhile, the 50-DMA level surrounding $20.35 guards the precious metal’s recovery moves ahead of the monthly peak near $20.50.
Even so, XAG/USD bulls need sustained trading beyond the low marked during early May, surrounding $20.65-50, for conviction.
Following that, a run-up towards June’s low of $20.90 and the $21.00 threshold should lure the buyers.
Overall, silver prices are likely to witness further downside but the $19.50 appear to restrict the short-term south-run.
Silver: Daily 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.
