XAG/USD rebound needs validation from previous support at $18.60

  • The price of silver remains on the sidelines after rebounding from its lowest level in two years.
  • The oversold RSI favors buyers, but $19.10 looks tough to break.
  • The short-term falling wedge support line limits the immediate downside.

The price of silver (XAG/USD) is struggling to extend the corrective pullback from the lowest level since July 2020, rising to $18.45 in the first Asian session on Friday.

In doing so, the shiny metal retains the previous day’s bounce off the support line of a month-old falling wedge amid an oversold RSI (14).

However, the May 13 support-turned-resistance trendline around $18.60 at press time is probing XAG/USD bulls.

The convergence of the upper line of the descending wedge of the bullish chart pattern and the 10-DMA near $19.10 is also the main hurdle.

If silver breaks above $19.10, it can rally towards a descending resistance line from April near $20.30.

Meanwhile, further lows in silver may aim to retest the aforementioned wedge bottom around $18.00 at press time.

Subsequently, the lows marked in June 2020, around $16.95, will attract the attention of the market.

Overall, the silver bears appear to have run out of steam, but buyers need validation to regain control.

Silver: daily chart

Trend: further weakness expected


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