Silver Price Analysis: RSI conditions direct XAG/USD bulls towards $20.00

• Silver price holds onto to recovery moves from weekly low amid oversold RSI.
• 100-SMA, four-day-old descending trend line challenge immediate run-up.
• $19.50 appears a tough nut to crack for XAG/USD bears.

Silver price (XAG/USD) prints a corrective pullback around $19.85, snapping a three-day downtrend. In doing so, the bright metal rebounds from a two-week low during Thursday’s Asian session.

The metal’s rebound seems to take clues from the nearly oversold RSI conditions.

That said, the XAG/USD buyers presently aim for the convergence of the 100-SMA and the weekly resistance line, around $20.00.

However, the 23.6% Fibonacci retracement of July-August upside and early August swing high, respectively near $20.25 and $20.50, could challenge the metal buyers afterward.

In a case where the XAG/USD prices remain firmer past $20.50, the odds of witnessing the fresh monthly high, currently around $20.90, can’t be ruled out.

On the contrary, multiple levels marked since early July joins the 200-SMA and 50% Fibonacci retracement level to highlight $19.50 as strong support. Following that, $18.90 and July’s low of $18.14 could lure the bullion bears.

Overall, silver prices are likely to witness a short-term upside but the bullish trend is far.

Silver: Four-hour chart

Trend: Limited upside expected