- Silver extends the previous day’s pullback from the monthly low, and has been crashing lately.
- The pullback in the RSI and the bearish candlestick keep bullish sellers below the $20.50 DMA hurdle.
- The previous resistance line from April puts a floor under prices.
The price of silver (XAG/USD) is holding near $20.25, down 0.56% intraday ahead of Tuesday’s European session.
In doing so, the shiny metal justifies the previous day’s Doji candlestick after failing to break through the 50-DMA.
The RSI line (14) also appears to have lost momentum to the upside.
However, the 23.6% Fibonacci retracement of the April-July decline near $20.00 may limit the price’s immediate decline ahead of the April 18 resistance-turned-support line near 19.15. $ at the latest.
Should commodity prices dip below $19.15, the yearly low of $18.14 marked in July would regain market attention.
On the contrary, the recovery remains elusive until staying above the 50-DMA level around $20.50.
Subsequently, the mid-June low near $20.90 and the $21.00 threshold may entertain silver bulls before highlighting the confluence of $22.15-$20 resistance, including including the 100-DMA and 50% Fibonacci retracement level.
In summary, XAG/USD remains on the bear’s radar and may refresh the yearly low, but the southern trend looks bumpy.
Silver: daily chart
Trend: continuation of the expected fall