Silver Price Analysis: XAG/USD bears take a breather at yearly low with eyes on $21.42
- Silver licks its wounds at 2022 bottom after posting the biggest daily fall in three weeks.
- Oversold RSI conditions test sellers but recovery remains elusive until staying below previous support line from January.
- Double bottoms around $21.42 become crucial support, descending trend line from April 18 adds to the upside filters.
Silver (XAG/USD) prices consolidate the latest losses around $21.80 during the quiet Asian session on Tuesday. In doing so, the bright metal justifies oversold RSI conditions to portray a bounce off the yearly low flashed the previous day.
However, the support-turned-resistance line from January, around $22.15, guards the quote’s immediate rebound. Following that, a downward sloping resistance line from April 18, close to $22.70, will challenge the XAG/USD bulls.
If silver prices manage to cross the $22.70 hurdle, the odds of witnessing further recovery towards the previous week’s top surrounding $23.30 can’t be ruled out.
Meanwhile, the lows marked in September and December of 2021 portray a double-bottom around $21.42, making it a tough nut to crack for the bears.
Should the silver sellers ignore oversold RSI conditions and conquer the $21.42 mark, $21.00 and $20.00 levels may act as an intermediate halt before directing the quote towards the 2019 peak surrounding $19.65.
Overall, silver is likely to witness a corrective pullback but the trend reversal is far from here.
Silver: Daily chart
Trend: Corrective pullback expected