Silver Price Analysis: XAG/USD retreats from $21.25 resistance confluence

• Silver fades Friday’s corrective pullback from six-week low.
• Convergence of the 61.8% Fibonacci retracement, 20-SMA challenges the buyers.
• Monthly bearish channel joins steady RSI to keep sellers hopeful.

Silver (XAG/USD) prices remain pressured around a 1.5-month low as sellers attack the $21.00 threshold during Monday’s Asian session.

In doing so, the brighter metal pulls back from a convergence of the 61.8% Fibonacci retracement of May 13 to June 06 upside, as well as the 20-SMA, around $21.25.

Also keeping the sellers hopeful is the metal’s failure to cross a weekly resistance line, around $21.25 by the press time, not to forget the downward sloping trend channel from June 01.

That said, the XAG/USD bears may aim for the $21.00 as immediate support ahead of the yearly low near $2.45.

Following that, the stated channel’s lower line, near $20.40, precedes the $20.00 psychological magnet to lure the sellers.

Alternatively, a clear upside break of the $21.25 resistance confluence guards the short-term upside momentum of the silver prices.

Even if the bullion rises past $21.25, the aforementioned channel’s resistance line, at $21.60 by the press time, will be crucial for the short-term XAG/USD buyers as a break of which could direct the advances towards the monthly high near $22.50.

Silver: Four-hour chart

Trend: Bearish