Silver Price Analysis: XAGUSD bears need validation from $21.45 support confluence
- Silver price retreats from five-month high but stays beyond the key resistance, now support.
- Overbought RSI suggests further pullback but bears should wait for $21.45 breakdown for clarity.
- An eight-month-old resistance line appears the key hurdle for XAGUSD buyers to tackle.
Silver price (XAGUSD) renews its intraday low near $21.90 as bulls run out of steam around a five-month high during Tuesday’s Asian session.
Even so, the bright metal stays beyond the convergence of the 200-DMA and the previous resistance line from early August, near $21.45, which in turn challenges the metal’s downside move.
It’s worth observing, however, that the overbought conditions of the RSI (14) direct XAGUSD towards the aforementioned key support confluence, previous resistance.
It should be noted that the tops marked in October and August, respectively near $21.25 and $20.85, could also probe the silver bears before giving them control.
On the flip side, recovery moves need to refresh the multi-day high, currently around $22.10, to lure the XAGUSD bears.
Following that, a downward-sloping resistance line from March, around $22.50, will be crucial to welcome the metal bulls.
Should the quote remains firmer past $22.50, the odds of witnessing a run-up toward March’s low near $24.00 can’t be ruled out.
Overall, the silver price is likely to remain pressured but the downside appears limited and bumpy unless the quote stays beyond $20.85.
Silver: Daily chart
Trend: Limited downside expected