Silver Price Analysis: XAG/USD rebounds on the way to $20.80
- Silver snaps four-day downtrend, bounces off nine-week low.
- Bearish MACD signals, sustained break of previous key support line from September keep sellers hopeful.
- Four-month-old horizontal area, 2021 low act as additional supports before 61.8% FE.
Silver (XAG/USD) stays firmer above $22.00, up 0.82% intraday around $22.42 as traders await Thursday’s European session.
The bright metal bounces off a two-month-old horizontal area but bearish MACD signals and a clear weakness after breaking the support line from late September favor sellers.
Hence, further selling can be witnessed on a sustained break of the stated immediate support zone near $22.00-15.
Following that, the yearly bottom marked in September and 61.8% Fibonacci Expansion (FE) of May-November moves, respectively near $21.40 and $20.80, will be lure XAG/USD sellers.
Meanwhile, corrective pullback remains elusive below the early November’s low around $23.00, a break of which will escalate the recovery moves towards the 38.2% Fibonacci retracement (Fibo.) level of May-September fall, around $24.20.
Should silver buyers remain dominant past $24.20, the previous support line from September and November’s peak, close to $24.35 and $25.40 in that order, will be in focus.
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.
