- Silver price remains lower near key short-term support comprising the 50-day EMA, three-week ascending support line.
- Pullback in bullish MACD signals, sustained pullback in 61.8% Fibonacci retracement teasing sellers.
- The bulls need validation from $21.00 to regain control.
The price of silver (XAG/USD) remains under pressure at around $20.30, maintaining yesterday’s bearish bias in Friday’s Asian session. In doing so, the shiny metal is holding on to the latest break down of the 50% Fibonacci retracement level of the June-July drop amid the recent fading of bullish signals from the MACD.
That said, the quote’s reversal from the 61.8% Fibonacci retracement level earlier in the week is also keeping XAG/USD sellers hoping to conquer the confluence of $20.20 support, including including the 50-DMA and an ascending trendline from July 25th.
It should be noted that silver sellers could look for the daily close below the $20.00 threshold to validate weakness beyond $20.20.
Following this, a run south towards the five-week horizontal zone near $19.55-45 cannot be ruled out.
Meanwhile, the 50% and 61.8% Fibonacci retracement levels near $20.35 and $20.85, respectively, may limit short-term bullish moves in the price of silver.
If the quote manages to break above $20.85, the mid-June low near $21.00 will act as an additional filter north before steering XAG/USD buyers towards the June 27 high at 21 $.53.
Silver: daily chart
Trend: further weakness expected