Silver Price Analysis: XAG/USD defends $21.50, fades bounce off six-month-old support

• Silver struggles to keep the rebound from 14-month low, retreats of late.
• Oversold RSI, key support line challenge immediate downside.
• Recovery moves need to cross August lows to prevail.

Silver (XAG/USD) remains sidelined around July 2020 levels, recently easing to $21.55 as European traders await Thursday’s bell.

In doing so, the commodity sellers attack a downward sloping trend line from March-end amid oversold RSI conditions.

Not only the stated support line near $21.45 but 61.8% Fibonacci Expansion (FE) of the mid-June to August month fall, around $21.30, adds to the downside filters.

Meanwhile, corrective pullback remains elusive below the last month’s low near $22.16.

Even so, a descending resistance line from September 07, close to $22.45, will question the XAG/USD bulls before directing the quote to the six-week-old horizontal hurdle near $22.90.

Overall, silver remains in the bearish trajectory, even for the short-term, until it crosses $22.90.

Silver: Daily chart

Trend: Bearish