Silver Price Analysis: XAG/USD stays depressed around $21.00, looks set to retest yearly low
- Silver prices remain pressured at one-month low after the biggest daily fall since early May.
- Impending bear cross on MACD, clear downside break of horizontal support from late 2021 favor sellers.
- 10-DMA, five-week-old descending trend line adds to the upside filters.
Silver (XAG/USD) fails to overcome the bearish bias, even as the sellers take a breather around monthly low following the biggest daily slump in five weeks. That said, the bright metal stays defensive at around $21.00 during Tuesday’s Asian session.
A clear downside break of the seven-month-old horizontal support, now resistance around $21.40, favors the XAG/USD bears. Also keeping sellers hopeful is the MACD line that teases a cross of the signal line from above, suggesting a downside momentum.
Hence, the silver bears are on their way to retesting the yearly low surrounding $20.45, a break of which will highlight the $20.00 threshold.
In a case where XAG/USD drops below $20.00, the late 2019 peak of $19.65 could gain the market’s attention.
Alternatively, recovery moves need to stay beyond the support-turned-resistance around $21.40 to recall intraday buyers of silver.
Following that, the 10-DMA and a downward sloping trend line from May 05, respectively near $21.85 and $22.30, should lure the XAG/USD buyers.
Silver: Daily 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.
