Silver Price Analysis: XAGUSD slides beneath $21.70 support confluence
- Silver price struggles after posting the biggest daily loss in two weeks at the highest levels since June.
- October’s high, 50-SMA restricts immediate downside amid recently steady RSI.
- 21-SMA, weekly bullish channel’s bottom challenge recovery moves.
Silver price (XAGUSD) holds lower ground near $21.50 during Wednesday’s sluggish Asian session, after reversing from the five-month high the previous day.
Even so, the bullion sellers remain hopeful amid the bearish MACD signals and the metal’s sustained downside break of the $21.70 support confluence, now resistance comprising the 21-SMA and lower line of a one-week-old ascending trend channel.
That said, the 50-SMA and October’s high restrict the XAGUSD’s immediate downside near $21.30-25 amid a steady RSI (14).
Hence, the bright metal is likely to remain sidelined between $21.70 and $21.25 for now.
Should the quote manages to regain the buyer’s confidence by crossing the $21.70, the odds of witnessing a run-up toward the monthly high near $22.25 can’t be ruled out.
However, the aforementioned bullish channel’s upper line, close to $22.60, could challenge the silver buyers afterward.
Meanwhile, a downside break of $21.25 will highlight the $20.00 psychological magnet for the XAGUSD bears.
In a case where the silver price remains weak past $20.00, an upward-sloping support line from October 21, near $19.50, should challenge the downside momentum.
Silver price: Daily chart
Trend: Limited downside expected