Silver Price Analysis: XAG/USD retreats towards $21.00 with eyes on yearly low
- Silver holds lower ground as it fades Friday’s rebound from six-week low.
- Sluggish MACD, downbeat RSI favor sellers targeting fresh yearly lows.
- Two-month-old resistance line, monthly high and 200-DMA challenge buyers.
Silver (XAG/USD) prices remain pressured around $21.15, after reversing from $21.53 the previous day, as bears keep reins during Tuesday’s quiet Asian session.
In doing so, the bright metal remains below the downward sloping resistance line from late April amid sluggish MACD and RSI conditions, which in turn suggest the metal’s further downside.
That said, a mid-June swing low near $20.90 can offer immediate support to the XAG/USD before directing it to the $20.60-45 horizontal support area including the yearly low.
Although the RSI (14) may challenge the silver bears around the $20.60-45 zone, a clear break of the same support region won’t hesitate to direct the quote towards the 61.8% Fibonacci Expansion (FE) of April 20 to June 06 moves, near $19.45.
Meanwhile, recovery remains elusive below the aforementioned two-month-old resistance line, at $21.85 by the press time.
Following that, the monthly high and the 200-DMA, respectively near $22.51 and $23.30, will be important to watch.
In a case where the silver buyers keep reins past $23.30, the odds of witnessing a rally towards April’s peak of $26.22 can’t be ruled out.
Silver: Daily chart
Trend: Further downside 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.
