Silver Price Analysis: XAGUSD pullback eyes $21.30 support amid bearish RSI divergence
- Silver keeps Friday’s pullback from five-month high inside a one-week-old bullish channel.
- RSI (14) fails to back higher-high on prices, teases pullback towards the key SMAs.
- Buyers can aim for June’s top on crossing $22.20.
Silver price (XAGUSD) remains on the back foot around $21.55 inside a one-week-old bullish channel during Monday’s Asian session.
In doing so, the bright metal keeps the previous day’s pause in a run-up at the highest levels since June while justifying the bearish RSI divergence, a condition where the higher highs in prices fail to gain support from the RSI (14) and suggest a pullback.
That said, the quote’s latest weakness aims for the aforementioned bullish channel’s lower line, around $21.30.
Also acting as the short-term downside filter is the previous monthly high and the 50-SMA, respectively near $21.20 and $20.65.
It’s worth noting that the commodity’s weakness past $20.65 won’t hesitate to challenge the $20.00 psychological magnet whereas the 200-SMA level near $19.70 could challenge the XAGUSD bears afterward.
On the flip side, the upper line of the stated channel, close to $22.20 could restrict short-term silver advances ahead of the highs marked in June, near $22.50.
If the XAGUSD bulls keep the reins past $22.50, the $23.00 round figure and May’s peak of $23.10 should gain the market’s attention.
Silver price: Four-hour chart
Trend: Pullback 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.
