Silver Price Analysis: XAG/USD remains negative around $20.80

• Silver price forms a candlestick hammer on the daily chart after reaching a 2-week low around $20.50.
• The Relative Strength Index on the hourly chart crossed the 50 midline, reinforcing the XAG.
• If XAG/USD breaks above $20.95, Silver will rally towards $21.00; otherwise, it will consolidate around $20.50.

Silver price extends its losses after hitting a multi-month high around $22.25, and sinks below the 200 day EMA as US dollar strength weighs on the white metal. Thus, the XAG/USD is trading at $20.85, losing 0.56%, after reaching a daily maximum of $21.00 a troy ounce.

Silver Price Analysis: Technical Perspective

From a technical point of view, XAG/USD has a neutral-upward bias, as the daily chart shows. On Monday, XAG/USD broke below the Oct 4 high at $21.24 compounding a slide below $21.00. Despite the white metal hitting a fresh 2-week low of $20.58, silver is building a hammer, which means buyers have stepped in around $20.50 as they prepare to storm the EMA. 200 days at $21.41.

In the short term, the hourly chart of XAG/USD shows Silver bottoming around the S2 daily pivot around $20.60, further supported by the Relative Strength Index (RSI), crossing above the 50 midline. At the same time, XAG/USD tests the confluence of a resistance trend line and the 50 hour EMA around $20.92, which, once broken, will expose the psychological $21.00 price level.

That said, the first resistance for XAG/USD would be the aforementioned confluence, followed by $21.00, the intersection of the R1 daily pivot, and the 100 hour EMA at $21.20. On the other hand, the first support for XAG/USD would be the S1 pivot at $20.76, followed by the daily S2 pivot at $20.57.

Key Silver Technical Levels