- Silver price remains under pressure towards monthly horizontal support.
- The decline in the RSI, the decline in the bullish bias of the MACD also favors the sellers.
- The bulls are waiting for successful trades above the May low to regain control.
The price of silver (XAG/USD) remains lower around $19.80, extending the previous week’s pullback against the 50-DMA in Monday’s first Asian session.
Apart from the failures to break through the 50-DMA, the recent decline in the RSI (14) and the inability of the MACD to hold firmer are also teasing the sellers.
However, a one-month horizontal zone around $19.50 appears to challenge short-term XAG/USD bears.
In a case where the price of silver remains weak above $19.50, the previous resistance line from April 18 and the yearly low marked in July, around $18.60 and $18.15 respectively, will be important to monitor.
Meanwhile, the 50-DMA level around $20.35 shields the precious metal’s rally ahead of the monthly high near $20.50.
Even so, XAG/USD bulls need a sustained trade past the low marked in early May around $20.65-50 to be convinced.
Thereafter, a rally towards the June low of $20.90 and the low of $21.00 should attract buyers.
Overall, silver prices are likely to experience further decline, but $19.50 appears to limit the short-term southerly trend.
Silver: daily chart
Trend: further weakness expected