61.8% Fibonacci retracement examines XAG / USD sellers
- Silver is fading the corrective pullback near its lowest level since April.
- Key Fibonacci retracement tests sellers amid nearly oversold RSI conditions.
- 200-DMA, November 2020 prior support protects short-term recovery steps.
Silver (XAG / USD) struggles to defend $ 25.00, down 0.03% to $ 25.19 ahead of Tuesday’s European session.
Even so, metals sellers need validation for further downside as RSI conditions suggest a corrective pullback from the 61.8% Fibonacci retracement from November 2020 to February 2021 near $ 25.00.
Therefore, expected recovery moves may target the support reversal resistance line around $ 25.50 first before challenging the 200 DMA level at $ 25.86.
During the price’s continued surge past $ 25.86, a four-month-old horizontal hurdle at $ 26.75-80 could put the silver bulls to the test before returning controls.
Meanwhile, a daily close below the stated Fibonacci support near $ 25.00 will take the bears to the $ 24.70 level, including lows marked in late January and mid-April.
However, a clear downtrend above $ 24.70 will not hesitate to break the annual low of $ 23.77.
Overall, silver sellers appear tired and therefore expected to consolidate, but the overall downtrend will remain intact until the metal stays below $ 26.80.
Silver: daily chart