- Silver prices remain under pressure as sellers seek key near-term support.
- Bearish MACD signals, undervalued RSI line favors sellers.
- 200-SMA prior resistance from early June limits immediate downside.
- Recovery moves need a sustained break of $20.51 to attract buyers.
Silver (XAG/USD) prices extend yesterday’s losses as bears close the key $19.75 support during Wednesday’s Asian session.
In doing so, the bright metal justifies the bearish double-top formation as it breaks through the 200-SMA and a two-month-old previous resistance line. However, bearish MACD signals and the down-sloping RSI, which is not oversold, are also favoring the metals sellers.
With this, the XAG/USD bears are likely to break the immediate $19.75 support, which in turn could steer the price towards the monthly horizontal support area near $19.50-40.
In a case where silver sellers dominate past $19.40, the $19.00 and $18.70 levels could provide a stopover during the expected run south targeting the year low near $18.15.
Alternatively, recovery moves remain elusive until the price stays below the $20.51 horizontal hurdle, also the double-top area.
After that, an uptrend towards the 61.8% Fibonacci retracement of the June-July downturn near $20.85 cannot be ruled out.
However, XAG/USD’s move higher above $20.85 depends on its ability to remain firmer above the June 27th high near $21.55.
Silver: four hour chart
Trend: Further weakness expected
Comments are closed.