Silver Price Analysis: XAG/USD extends pullback form 50-DMA towards $19.50

• Silver price remains pressured towards monthly horizontal support.
• RSI retreat, receding bullish bias of MACD also favor sellers.
• Bulls await successful trading beyond May’s low to retake control.

Silver price (XAG/USD) stays softer around $19.80, extending the previous week’s pullback from the 50-DMA amid Monday’s initial Asian session.

In addition to the failures to cross the 50-DMA, the recent retreat of the RSI (14) and the MACD’s failure to stay firmer also tease sellers.

However, a one-month-old horizontal area surrounding $19.50 appears to challenge the short-term XAG/USD bears.

In a case where the silver price remains weak past $19.50, the previous resistance line from April 18 and the yearly low marked in July, respectively around $18.60 and $18.15, will be important to watch.

Meanwhile, the 50-DMA level surrounding $20.35 guards the precious metal’s recovery moves ahead of the monthly peak near $20.50.

Even so, XAG/USD bulls need sustained trading beyond the low marked during early May, surrounding $20.65-50, for conviction.

Following that, a run-up towards June’s low of $20.90 and the $21.00 threshold should lure the buyers.

Overall, silver prices are likely to witness further downside but the $19.50 appear to restrict the short-term south-run.

Silver: Daily chart

Trend: Further weakness expected