Silver Price Analysis: XAG/USD bears take a breather around 78.6% Fibo.
- Silver fades bounce off two-month low, stays below fortnight-old resistance line.
- Oversold RSI probes sellers but bulls need to cross 200-SMA for conviction.
Silver (XAG/USD) remains pressured, paring the previous day’s corrective pullback from a multiday low during Friday’s Asian session.
In doing so, the bright metal seesaws around 78.6% Fibonacci retracement level of an upside from late September to mid-November. Adding to the bearish bias is the descending trend line from November 22.
However, oversold RSI conditions challenge the XAG/USD sellers, which in turn question the bears and raises hopes of a bounce towards the short-term resistance line, near $22.65 at the latest.
Should silver buyers conquer the $22.65 hurdle, the $23.00 threshold and 50% Fibo. near $23.40 can test the upside before driving the prices towards the 200-SMA level of $24.06.
On the flip side, a clear downside break of the stated 78.6% Fibonacci retracement level of $22.20 may respect the $22.00 round figure as an intermediate halt during the fall to the yearly bottom of $21.42.
Overall, silver prices are likely to remain bearish until crossing the 200-SMA hurdle but corrective pullbacks can’t be ruled out.
Silver: Four-hour chart
Trend: Further weakness expected