- Silver remains under pressure around weekly low and holds on to the downside break of 2 week old support.
- A 6-week horizontal support, an almost oversold RSI may challenge further downside.
- 200-SMA holds key for bulls entry, multiple supports to test bears on the way to 61.8% FE.
Silver price (XAG/USD) remains on the back foot, justifying the previous day’s technical break and heading into Wednesday’s European session. However, the bright metal is hovering around $20.80 at press time.
XAG/USD bears on Tuesday celebrated the downside break of the 14-day support, which now holds resistance near $20.90, to refresh the weekly low. However, the early May low around $20.60 put into question the further downside of the price.
However, the corrective pullback remains below the previous support line near $20.90 to make sellers hopeful to witness the aforementioned horizontal support near $20.60.
However, near-oversold RSI conditions appear to be challenging metals prices at weekly lows, a break of which could steer sellers towards the yearly low of $20.45 hit in May.
In a case where XAG/USD remains bearish above $20.45, the focus will be on the 61.8 percent Fibonacci Expansion (FE) from April 20th to June 6th near $19.45 .
Alternatively, a bounce below the $20.90 support-resistance level remains elusive.
After that, down sloping trend lines from June 21st and June 06th near $21.25 and $21.40 respectively could challenge silver buyers.
However, it is worth noting that the 200 SMA level of $21.68 is key to enter the XAG/USD bull.
Silver: four hour chart
Trend: Limited downside expected
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