- Silver price renews intraday low during the first loss-making day in four.
- Rising wedge, nearly overbought RSI adds strength to bearish bias.
- Convergence of previous resistance line, 21-DMA appears a tough nut to crack for XAG/USD bears.
Silver price (XAG/USD) remains on the back foot as it refreshes intraday low near $23.30 during early Monday. In doing so, the bright metal defies the three-day winning streak by reversing from the highest levels since late April.
It’s worth noting that the overbought conditions of the RSI (14) and the quote’s failure to stay beyond the 61.8% Fibonacci retracement level of March-September downside, near $23.40, teases XAG/USD sellers. Also keeping the bears hopeful is the one-month-old rising wedge chart pattern.
That said, a clear downside break of $22.70 becomes necessary to confirm the bearish chart pattern, which in turn highlights the theoretical target of $19.10.
However, a convergence of the 21-DMA and the previous resistance line from March, around $21.90 by the press time, appears crucial support for the Silver bears to break before taking control. Also challenging the XAG/USD downside is the $20.00 threshold.
On the flip side, a daily closing beyond the 61.8% Fibonacci retracement level near $23.40 could lure short-term buyers of XAG/USD.
Following that, the upper line of the stated wedge, near the $24.00 round figure, could act as the last defense of the Silver bears before giving control to the commodity buyers.
Silver price: Daily chart
Trend: Further downside expected