- Silver is printing a seven-day downtrend, remains under pressure around the three-week low.
- The 78.6% Fibonacci retracement level tests target the monthly low, 50-DMA adding to the filters on the upside.
- The Slow Momentum line hints at further grinding at the multi-day bottom.
Silver (XAG/USD) remains down around $22.40, down 0.10% intraday in Monday’s Asian session.
In doing so, the shiny metal remains under pressure near the monthly low while remaining between the previous support line from December 15 and the 78.6% Fibonacci retracement (Fibo.) of the September-November rise.
It should be noted, however, that the Bearish Momentum and sustained trading below 50-DMA holds hope for a refresh of the monthly low, currently around $21.95.
Thereafter, the double bottoms marked in 2021 around $21.42 will be crucial to watch.
Meanwhile, the corrective pullback needs to break through the aforementioned support-turned-resistance line near $22.50 to target the 50-DMA level of $22.85.
During the XAG/USD rise above $2.85, the $23.00 threshold will test buyers before directing them to the 50% Fibo. level near $23.41.
Silver: daily chart
Trend: further weakness expected