- Silver prices remain under pressure around the intraday low, down for the second day in a row.
- Bearish oscillators, U-turn from the 61.8% Fibonacci retracement suggest further decline in XAG/USD.
- 10-DMA adds strength to the upward hurdle of $19.00, the three-month support challenge sellers.
The price of silver (XAG/USD) remains lower at around $18.30 as the bears attack the key short-term support line in Thursday’s Asian session. In doing so, the shiny metal extends yesterday’s losses while approaching the weekly low.
Given the metal’s pullback moves from the 61.8% Fibonacci retracement level from September to October, joining the bearish signals of the MACD and the pessimistic RSI (14), not oversold, XAG/USD should remain weak.
However, the RSI line is rapidly approaching oversold territory and prices are also close to the strong support zone comprising several levels marked since early July around $18.00.
Even if the quote falls below $18.00, the yearly low near $17.55 could act as an additional downside filter for bullion.
Therefore, silver bears have limited room to rejoice.
On the other hand, the 10-DMA joins the 61.8% Fibonacci retracement level to highlight $19.00 as a strong near-term resistance.
Following this, several hurdles near $19.15-20 may test silver buyers before steering them towards the $20.00 threshold.
In a case where XAG/USD remains firmer above $20.00, the highs marked in August and at the beginning of the month, near $20.90 and $21.25 respectively, will be in focus.
Silver: daily chart
Trend: Limited decline expected