- Silver remains vulnerable with daily RSI still stays bearish.
- XAG/USD teasing a rising channel breakdown on the daily chart.
- 200-DMA is in sight for the XAG bears but Wednesday’s close is critical.
Silver (XAG/USD) extended its bearish momentum into the second straight day on Tuesday, now holding the lower ground above the $23 level.
The bears are gearing up for another leg lower, especially after the bulls managed to defend the rising trendline support, then at $23.23, avoiding a rising channel breakdown on the daily chart.
Therefore, Wednesday’s close below $23.29 is critical to confirming a bearish breakdown, which could open floors towards September lows of $21.65.
Acceptance below that level could expose the 200-daily moving average (DMA) support at $20.47.
The 14-day Relative Strength Index (RSI) is on a recovery mode although turns flat at 39.45, indicating that a minor bounce could be in the offing before the sell-off resumes.
Alternatively, the bulls could attempt a bounce towards the powerful barrier around $24.20, the confluence of the 21 and 50-DMAs.
Further north, the bullish 100-DMA at $24.67 could challenge the bulls’ commitment.