XAG / USD sellers attack 100-week SMA en route to $ 22.00
- Silver is on a three-day downtrend close to annual low, most recently to multi-day low.
- A bearish MACD signals further decline, but momentum seems to be running out of steam lately.
- Corrective pullback is to recover $ 23.00 to remind buyers, key Fibonacci retracement and 200 week SMA decoy bears.
Silver sellers (XAG / USD) tease annual low around $ 22.15-20 in Asian first session on Monday. In doing so, the white metal is struggling with the 100 week SMA amid bearish MACD signals and a weaker Momentum line.
While the strong SMA and less favorable Momentum for further decline challenges silver bears, the rebound needs to break through the support line turned resistance from September 2020, around $ 23.00, to convince buyers.
Even so, the April low around $ 23.80 and the monthly high near $ 24.85 add to the filters on the upside.
Meanwhile, a sharp breakout of the SMA level of $ 22.23 will steer CAG / USD prices towards a 50% Fibonacci retracement from March 2020 to February 2021 upward, near $ 20.82.
In a case where silver sellers hold the reins beyond $ 20.82, the $ 20.00 threshold and 200 week SMA near $ 19.00 will challenge them thereafter.
Silver: Weekly Chart
Trend: a short-term hedging movement expected