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.

Anil Panchal FXStreet

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

Additional important levels

Overview
Today last price	21.59
Today Daily Change	-0.07
Today Daily Change %	-0.32%
Today daily open	21.66

Trends
Daily SMA20	19.79
Daily SMA50	19.48
Daily SMA100	19.47
Daily SMA200	21.47

Levels
Previous Daily High	22.06
Previous Daily Low	21.28
Previous Weekly High	22.06
Previous Weekly Low	20.39
Previous Monthly High	21.24
Previous Monthly Low	18.09
Daily Fibonacci 38.2%	21.58
Daily Fibonacci 61.8%	21.76
Daily Pivot Point S1	21.27
Daily Pivot Point S2	20.88
Daily Pivot Point S3	20.48
Daily Pivot Point R1	22.06
Daily Pivot Point R2	22.46
Daily Pivot Point R3	22.85

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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