XAG/USD stays depressed around $21.00, looks set to retest yearly low

  • Silver prices remain pressured at one-month low after the biggest daily fall since early May.
  • Impending bear cross on MACD, clear downside break of horizontal support from late 2021 favor sellers.
  • 10-DMA, five-week-old descending trend line adds to the upside filters.

Silver (XAG/USD) fails to overcome the bearish bias, even as the sellers take a breather around monthly low following the biggest daily slump in five weeks. That said, the bright metal stays defensive at around $21.00 during Tuesday’s Asian session.

A clear downside break of the seven-month-old horizontal support, now resistance around $21.40, favors the XAG/USD bears. Also keeping sellers hopeful is the MACD line that teases a cross of the signal line from above, suggesting a downside momentum.

Hence, the silver bears are on their way to retest the yearly low surrounding $20.45, a break of which will highlight the $20.00 threshold.

In a case where XAG/USD drops below $20.00, the late 2019 peak of $19.65 could gain the market’s attention.

Alternatively, recovery moves need to stay beyond the support-turned-resistance around $21.40 to recall intraday buyers of silver.

Following that, the 10-DMA and a downward sloping trend line from May 05, respectively near $21.85 and $22.30, should lure the XAG/USD buyers.

Silver: Daily chart

Trend: Further weakness expected


Leave a Comment