Silver Price Analysis: XAG/USD bears attack $19.75 support confluence

• Silver prices remain pressured as sellers poke short-term key support.
• Bearish MACD signals, downbeat RSI line favor sellers.
• 200-SMA, previous resistance line from early June restricts immediate downside.
• Recovery moves need sustained break of $20.51 to lure buyers.

Silver price (XAG/USD) extends the previous day’s losses as bears approach the $19.75 key support during Wednesday‘s Asian session.

In doing so, the bright metal justifies the double-top bearish formation as it pokes the 200-SMA and a two-month-old previous resistance line. That said, the bearish MACD signals and downward sloping RSI, not oversold, also favors the metal sellers.

With this, the XAG/USD bears are likely to break the $19.75 immediate support, which in turn could direct the quote towards the monthly horizontal support area near $19.50-40.

In a case where silver sellers dominate past $19.40, the $19.00 and the $18.70 mark may offer an intermediate halt during the anticipated south-run targeting the yearly low near $18.15.

Alternatively, recovery moves remain elusive until the quote stays below the $20.51 horizontal hurdle, also the double-top area.

Following that, an upward trajectory towards the 61.8% Fibonacci retracement of the June-July downturn, near $20.85, can’t be ruled out.

However, the XAG/USD upside past $20.85 hinges on its ability to stay firmer beyond June 27 swing high near $21.55.

Silver: Four-hour chart

Trend: Further weakness expected