XAG / USD bears take a breather at 78.6% Fibo.
- Silver is fading, bouncing off the two-month low and staying below the fortnightly resistance line.
- Oversold RSI tests sellers, but bulls need to cross 200-SMA to be convinced.
Silver (XAG / USD) remains under pressure, offsetting the previous day’s corrective pullback from a multi-day low during Friday’s Asian session.
The light metal fluctuates from the end of September to mid-November around the 78.6% Fibonacci retracement level of an upward trend. In addition to the downward trend, there is also the downward trend line from November 22nd.
However, the oversold RSI conditions are challenging the XAG / USD sellers, which in turn calls the bears into question and raises hopes for a rebound towards the near-term resistance line, near $ 22.65 at the latest.
Should silver buyers cross the $ 22.65 threshold, the $ 23.00 threshold and 50% Fibo. near $ 23.40 can test the bullish move before driving prices towards the 200 SMA level of $ 24.06.
On the flip side, a clear downside break of the stated 78.6% Fibonacci retracement level of $ 22.20 could respect the round figure of $ 22.00 as a stop during the decline to the yearly low of $ 21.42.
Overall, silver prices should remain declining until the 200 SMA hurdle is exceeded, but corrective pullbacks cannot be ruled out.
Silver: four-hour chart
Trend: further weakness expected