XAG/USD remains depressed around $21.00 and looks set to retest year low
- Silver prices remain under pressure at monthly lows after biggest daily decline since early May.
- Looming bear cross on MACD, clear downside break of late 2021 horizontal support favors sellers.
- 10-DMA, five week old descending trendline complements the up filters.
Silver (XAG/USD) is failing to break the bearish bias even as sellers take a breather around the monthly low after the biggest daily drop in five weeks. However, the bright metal remains defensive around $21.00 during Tuesday’s Asian session.
A clear downside break of the 7-month-old horizontal support, which is now resistance around $21.40, favors the XAG/USD bears. Also, the MACD line, which highlights a cross of the signal line from above, is making sellers feel hopeful, indicating downside momentum.
Therefore, the silver bears are on course to retest the yearly low around $20.45, a break will highlight the $20.00 level.
In a case of XAG/USD breaking below $20.00, the late 2019 high of $19.65 could catch the market‘s attention.
Alternatively, recovery moves must stay above support turned resistance around $21.40 to call back intraday silver buyers.
After that, the 10-DMA and a down sloping trend line from May 5 near $21.85 and $22.30 respectively should attract XAG/USD buyers.
Silver: daily chart
Trend: Further weakness expected