Silver Price Analysis: XAG/USD stays directed towards $22.00
- Silver struggles to keep Friday’s corrective pullback from yearly low.
- Bearish trend lines, SMA favor sellers but oversold RSI conditions portray intermediate bounces.
Silver (XAG/USD) remains pressured near $22.40, down 0.08% intraday, amid Monday’s Asian session. In doing so, the bright metal fades the previous day’s bounce off the yearly low.
Not only failures to keep the corrective pullback but sustained trading below key resistance lines from early September and June, not to forget 50-DMA, also keep bears hopeful. However, oversold RSI conditions trigger consolidation.
Hence, the silver sellers remain directed towards the $22.16-22.00 area comprising the latest lows, also the yearly bottom, but any further weakness becomes less likely.
Should the metal drops below $22.00 on a daily closing, lows marked during November and September 2020, respectively around $21.90 and $21.65, add to the downside filters.
On the contrary, a three-week-old descending trend line near $23.00 guards immediate upside ahead of a bit broader resistance line from June 11, close to $23.70.
Even if the silver buyers cross the $23.70 hurdle, the 50-DMA level near $23.95, as well as the $24.00 threshold, will challenge the further upside, following that the monthly high of $24.86 will be in focus.
Silver: Daily 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.
