XAG/USD bears approach six-week support near $21.00

  • Silver remains under pressure around the intraday low, extending the early-week pullback from 21-DMA.
  • A steady RSI hints at the metal continuing to decline towards an ascending support line from mid-May.
  • The convergence of 21-DMA, a 13-day resistance line and a 23.6% Fibonacci retracement level seems like a tough problem for the bulls to solve.

Silver (XAG/USD) remains down for the second day in a row, taking offers at around $21.35, during Thursday’s Asian session.

In doing so, the shiny metal prolongs the recent pullback amid failures to break through major near-term hurdles. The stable RSI (14) also keeps the sellers hopeful.

That said, commodity prices are falling towards an upward sloping support line from May 13 at $21.00 at press time.

However, the monthly low of $20.89 and the May low around $20.45 will challenge further declines in the quote before highlighting the psychological magnet of $20.00 for the bears.

Alternatively, the 21-DMA, a two-week-old descending trendline and a 23.6% Fibonacci retracement of the April-May decline together offer strong resistance around $21.80-85.

If the quote manages to break above $21.85, an upward trajectory towards the 50-DMA and then towards the monthly high, around $22.40 and $22.50 respectively, cannot be ruled out.

Overall, silver prices should experience further decline, but the margin to the south seems limited.

Silver: daily chart

Trend: continuation of the expected fall

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