Silver Price Analysis: XAG/USD refreshes two-year low under $19.00
- Silver extends Monday’s losses towards renewing two-year low marked the previous week.
- Sustained trading below fortnight-old resistance line joins impending bear cross on MACD to favor sellers.
- Short-term rectangle, 50-SMA test buyers, descending trend line from June 24 lure sellers.
Silver Price (XAG/USD) takes offers to renew a two-year low of around $18.87 during Tuesday’s Asian session. In doing so, the bright metal extends the week-start losses to break the previous rectangle formation to the downside.
In addition to the downside break of the rectangle, an impending bear cross on the MACD and the quote’s sustained trading below a 12-day-old resistance line, around $1,910, also keep XAG/USD sellers hopeful.
Even if the silver manages to cross the $19.10 hurdle, the aforementioned rectangle’s upper line, near $19.50, will precede the 50-SMA level surrounding $19.55, to challenge commodity buyers.
In a case where the XAG/USD prices rally beyond $19.55, the odds of witnessing the run-up towards the monthly high of $20.20 can’t be ruled out.
Meanwhile, silver sellers may look for the metal’s successful break of rectangle’s support, at $18.92 by the press time, as oversold RSI (14) challenges further downside.
Should the quote remains below $18.92, the downward sloping support line from June 24, close to $18.15, will be in focus.
Silver: Four-hour chart
Trend: Bearish
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.
