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.

Anil Panchal FXStreet

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

Additional important levels

Overview
Today last price	21.5
Today Daily Change	-0.19
Today Daily Change %	-0.88%
Today daily open	21.69

Trends
Daily SMA20	21.82
Daily SMA50	22.53
Daily SMA100	23.52
Daily SMA200	23.36

Levels
Previous Daily High	21.94
Previous Daily Low	21.49
Previous Weekly High	22.02
Previous Weekly Low	20.9
Previous Monthly High	23.28
Previous Monthly Low	20.46
Daily Fibonacci 38.2%	21.77
Daily Fibonacci 61.8%	21.66
Daily Pivot Point S1	21.48
Daily Pivot Point S2	21.26
Daily Pivot Point S3	21.03
Daily Pivot Point R1	21.92
Daily Pivot Point R2	22.16
Daily Pivot Point R3	22.37

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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