XAG/USD bears are approaching the $21.55 support during the 3-day fall
- Silver remains under pressure around the one-week low, down for the third straight day.
- Clear downbreak of 1 month old ascending trendline, 21-DMA favors sellers.
- The five-week horizontal resistance appears to be a tough nut to crack for bulls.
Silver (XAG/USD) remains depressed around the weekly low near $21.60 during Friday’s Asian session after breaking key short-term supports the previous day.
However, the bright metal’s further downside hinges on its ability to break a three-week-old up-sloping trendline, which sits around $21.55 at press time.
Given the bearish RSI (14) and a clear break of the previously key support levels namely the 21-DMA and an ascending trendline from May 13th, XAG/USD is likely to extend the recent weakness below the immediate support.
This could allow the price to challenge the $21.30 and $21.00 supports before driving the bears to last month’s lows near $20.45.
Meanwhile, recovery moves might be initially challenged by the 21-DMA and support-resistance line from early May around $21.85 and $22.00 respectively.
After that, a horizontal area comprising several levels marked since early May and the 50-DMA, near $22.40-50 and $23.00 in that order, will be key for silver buyers .
Silver: daily chart
Trend: Further downward movement expected