Silver Price Analysis: XAG/USD ignores oversold RSI to renew two-year low below $18.00

• Silver price drops for the fifth consecutive day as it renews multi-month low, pares daily loss of late.
• Oversold RSI could trigger recovery but July’s bottom guards immediate upside.
• 61.8% and 78.6% FE levels lure bears, $19.00 holds the key for bull’s conviction.

Silver price (XAG/USD) bounces off the lowest levels since June 2020, marked earlier in the day, as bears lick their wounds after a five-day downtrend. That said, the bright metal drops 1.0% intraday despite the latest rebound to $17.82.

Oversold RSI (14) could be linked to the XAG/USD’s corrective pullback targeting the $18.00 threshold. However, the previous multi-month low marked in July, around $18.15, could challenge the metal’s further advances.

Even if the silver price rises past $18.15, a convergence of the 10-DMA and a downward sloping trend line from August 15 could challenge the upside moves around $18.75.

It’s worth noting, however, that a seven-week-old support-turned-resistance, near $19.00 by the press time, appears a tough nut to crack for the commodity buyers.

Alternatively, the 61.8% Fibonacci Expansion (FE) of the metal’s moves between April 29 and August 15, close to $17.40, could lure the silver bears.

Following that, a south-ward trajectory towards the June 2020 low near $17.00 and the 78.6% FE level surrounding $16.55 could challenge the XAG/USD sellers.

If at all the metal price remains weak past $16.55, a descending support line from May 13, close to $16.30, could become the last defense of the buyers.

Silver: Daily chart

Trend: Corrective pullback expected