Silver Price Analysis: XAG/USD stays directed towards $21.42 key support

FX
  • Silver prices remain pressured around intraday low, down for third consecutive day.
  • Multiple levels marked since September 2021 limited immediate downside ahead of $21.42.
  • Three-week-old descending trend line, bearish MACD signals challenge recovery moves.

Silver (XAG/USD) prices stay on the back foot at around $22.25, printing a three-day downtrend during Monday’s Asian session.

In doing so, the bright metal fades the previous week’s bounce off the short-term crucial horizontal support stretched from September 2021, surrounding $22.10-22.00.

Given the bearish MACD signals and the commodity’s failure to rebound, the quote is likely to retest the aforementioned horizontal support near $22.00.

However, the quote’s further downside will be challenged double bottoms marked during late 2021 around $21.42.

On the contrary, recovery moves, if any, need to cross the downward sloping trend line from April 18, close to $22.90, to convince short-term buyers to challenge the previous week’s top near $23.30. Also acting as a short-term key hurdle is the 200-DMA level of $23.72.

Overall, silver prices remain directed towards the south but there prevails limited room for bears.

Silver: Daily chart

Trend: Further declines expected

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