Further Downside Movement Off Silver Is Expected

• Silver price holds lower ground near intraday bottom, snaps two-day winning streak.
• U-turn from key moving average, Fibonacci retracement level joins bearish MACD signals to favor XAG/USD bears.
• 61.8% Fibonacci retracement adds to the upside filters, $21.40 acts as immediate support.

Silver price (XAG/USD) remains depressed around $21.70 during the first loss-making day in three heading into Tuesday’s European session. In doing so, the bright metal portrays a clear reversal from the 200-Hour Moving Average (HMA), as well as the 50% Fibonacci retracement level of its moves between February 09 and 17.

Not only the U-turn from the key technical hurdles but the bearish MACD signals also keep XAG/USD sellers hopeful.

With this, the precious metal’s further declines toward one-week-old horizontal support near $21.40 appear imminent.

However, the monthly low near $21.20 and the 61.8% Fibonacci Expansion (FE) of the metal’s moves from February 09 to 20, around the $21.00 threshold, could challenge the Silver bears.

In a case where the metal remains bearish past $21.00, the odds of witnessing a slump toward the $20.00 psychological magnet can’t be ruled out.

Alternatively, the 200-HMA and the 50% Fibonacci retracement level, respectively close to $21.85 and $21.90, restrict short-term recovery of the XAG/USD.

Following that, the $22.00 round figure will precede the 61.8% Fibonacci retracement level, also known as the gold Fibonacci ratio, could challenge the Silver buyers around $22.05.

Should the XAG/USD remains firmer past $22.05, the February 10 swing high near $22.30 could act as the last defense of the bears.

Silver price: Hourly chart

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Trend: Further downside expected