Silver Price Analysis: XAG/USD renews weekly low as bears approach $21.20 support
- Silver Price Analysis: XAG/USD renews weekly low as bears approach $21.20 support
- Five-week-old horizontal support area lures sellers amid bearish MACD signals, descending RSI.
- Bulls need successful break of three-week-old resistance to retake control.
Silver (XAG/USD) prices drop amid failures to cross the 200-SMA, as well as a short-term key resistance line. That said, the bright metal stays on offer to renew daily low around $21.40 during Wednesday’s Asian session.
In addition to the pullback from a downward sloping resistance line from June 03 and the 200-SMA, bearish signals from the MACD and downbeat RSI line, not oversold, also keep XAG/USD sellers hopeful.
However, a horizontal support area comprising multiple levels marked since mid-May, around $21.20, appears a tough nut to crack for the silver bears.
Should the quote drop below $21.20, the monthly low surrounding $20.90 may entertain sellers before directing them to May’s bottom of $20.45.
On the flip side, the 200-SMA and the aforementioned resistance line, respectively near $21.75 and $21.85, precede the $22.00 threshold to challenge the short-term XAG/USD rebound.
Following that, the monthly high near $22.50 will be crucial as a break of which could reverse the bear trend established in April.
Silver: Four-hour 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.
