XAG/USD falls to $21.50 on ascending triangle breakdown

  • Silver extends Friday’s losses by breaking the immediate bullish triangle.
  • RSI conditions, 100-HMA probe further downside, weekly horizontal support also challenges bears.
  • The bulls need a clean break of $22.51 to regain control.

Silver (XAG/USD) remains down for the second day in a row, down 0.75% around the intraday low of $21.47, as the bears applaud an early Monday technical break. The general strength of the US Dollar and the shiny metal’s inability to breach the $22.00 mark also keeps bears hopeful.

However, near-oversold RSI conditions and the 100-HMA limit immediate declines for XAG/USD to around $21.50. The 1-week horizontal support near $21.35 also acts as a filter on the downside.

If the quote falls below $21.35, the likelihood of seeing a new monthly low, currently around $20.90, cannot be ruled out. The same highlights the yearly low marked in May near $20.45.

Meanwhile, the return of the silver buyer needs a clear upside break from the $22.00 hurdle. However, the 200-HMA level of $21.65 and the lower line of the aforementioned triangle around $21.80 may limit the metal’s immediate recovery.

In a case where commodity prices rise above $22.00, the $22.30 and a monthly high of $22.51 may rest XAG/USD bulls before giving them control.

Silver: hourly chart

Trend: further weakness expected