$ 21.65-60 will be a tough nut to crack for XAG / USD bears
- Silver remains under pressure around the year low and stabilizes after the three-day downtrend.
- Six month old descending trend line, horizontal area of September 2020 challenge bears.
- The oversold RSI conditions suggest a corrective pullback towards the last August lows.
Silver bears (XAG / USD) are taking a breather at USD 22.30 after brushing the year-low at the beginning of the week.
However, the bright metal is struggling to extend the three-day downtrend near the multi-day lows amid oversold RSI conditions.
Even so, the lows marked near $ 22.87 on August 20th and the $ 23.00 line are challenging immediate recovery moves.
Thereafter, the March lows and September highs at $ 23.80 and $ 24.85, respectively, will be on the silver bulls’ radars before hitting the key 200 DMA level near $ 25.85.
On the flip side, the low of $ 22.00 and November 2020 at $ 21.90 may entertain the XAG / USD bears before being directed to the support confluence of $ 21.65-60, including a downward sloping trendline from March – and September low 2020.
In conclusion, the silver price could rebound as sellers appear tired. However, cops still have a long way to go before regaining control.
Silver: daily chart
Trend: corrective pullback expected