Silver Price Analysis: XAG/USD retreats from $21.25 resistance confluence
- Silver fades Friday’s corrective pullback from six-week low.
- Convergence of the 61.8% Fibonacci retracement, 20-SMA challenges the buyers.
- Monthly bearish channel joins steady RSI to keep sellers hopeful.
Silver (XAG/USD) prices remain pressured around a 1.5-month low as sellers attack the $21.00 threshold during Monday’s Asian session.
In doing so, the brighter metal pulls back from a convergence of the 61.8% Fibonacci retracement of May 13 to June 06 upside, as well as the 20-SMA, around $21.25.
Also keeping the sellers hopeful is the metal’s failure to cross a weekly resistance line, around $21.25 by the press time, not to forget the downward sloping trend channel from June 01.
That said, the XAG/USD bears may aim for the $21.00 as immediate support ahead of the yearly low near $2.45.
Following that, the stated channel’s lower line, near $20.40, precedes the $20.00 psychological magnet to lure the sellers.
Alternatively, a clear upside break of the $21.25 resistance confluence guards the short-term upside momentum of the silver prices.
Even if the bullion rises past $21.25, the aforementioned channel’s resistance line, at $21.60 by the press time, will be crucial for the short-term XAG/USD buyers as a break of which could direct the advances towards the monthly high near $22.50.
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.
