Silver Price Analysis: XAGUSD bears need validation from $21.45 support confluence

Silver price retreats from five-month high but stays beyond the key resistance, now support.
Overbought RSI suggests further pullback but bears should wait for $21.45 breakdown for clarity.
An eight-month-old resistance line appears the key hurdle for XAGUSD buyers to tackle.

Anil Panchal FXStreet

Silver price (XAGUSD) renews its intraday low near $21.90 as bulls run out of steam around a five-month high during Tuesday’s Asian session.

Even so, the bright metal stays beyond the convergence of the 200-DMA and the previous resistance line from early August, near $21.45, which in turn challenges the metal’s downside move.

It’s worth observing, however, that the overbought conditions of the RSI (14) direct XAGUSD towards the aforementioned key support confluence, previous resistance.

It should be noted that the tops marked in October and August, respectively near $21.25 and $20.85, could also probe the silver bears before giving them control.

On the flip side, recovery moves need to refresh the multi-day high, currently around $22.10, to lure the XAGUSD bears.

Following that, a downward-sloping resistance line from March, around $22.50, will be crucial to welcome the metal bulls.

Should the quote remains firmer past $22.50, the odds of witnessing a run-up toward March’s low near $24.00 can’t be ruled out.

Overall, the silver price is likely to remain pressured but the downside appears limited and bumpy unless the quote stays beyond $20.85.

Silver: Daily chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	21.91
Today Daily Change	-0.07
Today Daily Change %	-0.32%
Today daily open	21.98

Trends
Daily SMA20	19.96
Daily SMA50	19.56
Daily SMA100	19.48
Daily SMA200	21.47

Levels
Previous Daily High	22.09
Previous Daily Low	21.3
Previous Weekly High	22.06
Previous Weekly Low	20.39
Previous Monthly High	21.24
Previous Monthly Low	18.09
Daily Fibonacci 38.2%	21.79
Daily Fibonacci 61.8%	21.6
Daily Pivot Point S1	21.49
Daily Pivot Point S2	21
Daily Pivot Point S3	20.7
Daily Pivot Point R1	22.28
Daily Pivot Point R2	22.58
Daily Pivot Point R3	23.07

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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