Silver Price Analysis: XAG/USD pullback remains elusive below $20.00
- Silver price consolidates the biggest daily gains since February 2021 around one-month high.
- Firmer RSI, sustained trading beyond 200-SMA keeps buyers hopeful.
- Sellers have multiple levels to break before retaking control.
Silver price (XAG/USD) remains mildly offered near $19.65 heading into Tuesday‘s European session. In doing to the bright metal pare the heaviest run-up in nearly 19 months, marked the previous day, by retreating from the monthly peak.
Even so, the metal buyers remain hopeful as it keeps the previous day’s upside break of the 200-SMA amid firmer RSI (14).
Even if the metal drops below the stated key SMA support near $19.40, a one-week-old ascending support line, close to $19.15, will precede the $19.00 threshold to test the XAG/USD bears.
It’s worth noting that a fortnight-old horizontal area surrounding $18.60-50 appears a tough nut to crack for the metal sellers, a break which could make the prices vulnerable to revisiting the yearly low marked in August at around $17.55.
Alternatively, recovery moves may initially aim for the latest peak near the $20.00 psychological magnet.
Following that, the 78.6% Fibonacci retracement level of the XAU/USD downside from August 14 to September 01, around $20.10, will act as an additional upside filter before directing the bulls towards the previous monthly high of $20.87.
Overall, silver remains on the bull’s radar despite the latest pullback.
Silver: Four-hour chart
Trend: Further upside expected