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.

Anil Panchal FXStreet

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

Additional important levels

Overview
Today last price	19.92
Today Daily Change	0.00
Today Daily Change %	0.00%
Today daily open	19.92

Trends
Daily SMA20	19.25
Daily SMA50	20.37
Daily SMA100	21.98
Daily SMA200	22.8

Levels
Previous Daily High	20.25
Previous Daily Low	19.55
Previous Weekly High	20.51
Previous Weekly Low	19.55
Previous Monthly High	20.37
Previous Monthly Low	18.15
Daily Fibonacci 38.2%	19.82
Daily Fibonacci 61.8%	19.98
Daily Pivot Point S1	19.56
Daily Pivot Point S2	19.21
Daily Pivot Point S3	18.86
Daily Pivot Point R1	20.26
Daily Pivot Point R2	20.61
Daily Pivot Point R3	20.96

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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