Silver Price Analysis: XAG/USD bounces off key support towards $20.00

• Silver rebounds from two-year low as Five-month-old support line challenges bears.
• Oversold RSI conditions add strength to the recovery moves.
• Previous support line from mid-June guards immediate recovery, 61.8% Fibonacci retracement of 2020-21 upside lure bears.

Silver (XAG/USD) picks up bids to $19.90 during Monday’s Asian session, bouncing off a two-year low after the five-week downtrend.

Even if the bright metal refreshed the multi-day low the previous day, it couldn’t provide a daily closing below a downward sloping support line from early February, around $19.60 by the press time.

In addition to the failure to break the key support line on a daily closing basis, the oversold RSI (14) also hints at the quote’s short-term recovery.

However, the support-turned-resistance line from mid-June, around $20.35, guards the metal’s immediate recovery.

Following that, the 10-DMA and a downward sloping resistance line from April 18, respectively around $20.60 and $21.00, will be important to recall the XAG/USD buyers.

On the contrary, the aforementioned multi-day-old support line, near $19.60, restricts silver’s immediate downside, not to forget the oversold RSI conditions.

Should the quote drop below $19.60, the odds of witnessing a 100-pip slump towards the 61.8% Fibonacci retracement of 2020-21 upside, near $18.50-55, can’t be ruled out.

Silver: Daily chart

Trend: Further recovery expected