Silver Price Analysis: XAG/USD rebound needs validation from $18.60 previous support

Silver Price remains sidelined after bouncing off two-year low.
Oversold RSI favors buyers but $19.10 appears a tough nut to crack.
Support line of the short-term falling wedge restricts the immediate downside.

Anil Panchal FXStreet

Silver Price (XAG/USD) struggles to extend corrective pullback from the lowest level since July 2020, taking rounds to $18.45 during Friday’s initial Asian session.

In doing so, the bright metal keeps the previous day’s rebound from a one-month-old falling wedge’s support line amid oversold RSI (14).

However, the support-turned-resistance trend line from May 13, around $18.60 by the press time, probes the XAG/USD buyers.

Also acting as the key hurdle is the convergence of the stated bullish chart pattern falling wedge’s upper line and the 10-DMA, near $19.10.

Should silver rises past $19.10, it can rally towards a downward sloping resistance line from April, close to $20.30.

Meanwhile, silver’s fresh declines may aim to retest the aforementioned wedge’s bottom, surrounding $18.00 by the press time.

Following that, lows marked during June 2020, around $16.95, will gain the market’s attention.

Overall, silver bears appear to have run out of steam but the buyers need validation to retake control.

Silver: Daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	18.45
Today Daily Change	-0.77
Today Daily Change %	-4.01%
Today daily open	19.22

Trends
Daily SMA20	20.37
Daily SMA50	21.21
Daily SMA100	22.99
Daily SMA200	23.16

Levels
Previous Daily High	19.41
Previous Daily Low	18.86
Previous Weekly High	20.2
Previous Weekly Low	18.92
Previous Monthly High	22.52
Previous Monthly Low	20.22
Daily Fibonacci 38.2%	19.2
Daily Fibonacci 61.8%	19.07
Daily Pivot Point S1	18.92
Daily Pivot Point S2	18.61
Daily Pivot Point S3	18.37
Daily Pivot Point R1	19.46
Daily Pivot Point R2	19.71
Daily Pivot Point R3	20.01

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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