Silver Price Analysis: XAG/USD bulls lurk around monthly support amid oversold RSI

• Silver pare losses at six-week low, snaps two-day downtrend.
• Monthly descending trend line, oversold RSI hints at the corrective pullback towards 50-SMA, Bears eye yearly low.

Silver (XAG/USD) picks up bids to $22.00, consolidating recent losses around a multi-day low. That said, the commodity snaps a two-day downtrend during early Friday.

Although the metal dropped to the fresh low since September 30, oversold RSI conditions and a downward sloping trend line from early November limits the immediate downside around $21.80.

However, recovery moves remain elusive until crossing $23.00, comprising November 03 low.

The latest run-up may aim for a 50-SMA level of $22.45 while 61.8% Fibonacci retracement (Fibo.) of September-November upside, near $22.95, will act as an extra filter to the north.

Alternatively, a downside break of the stated support line near $21.80 will poke September’s low, also the 2021 bottom surrounding $21.40.

In a case where the silver prices remain weak past $21.40, the $20.00 psychological magnet will be in focus.

Silver: Four-hour chart

Trend: Corrective pullback expected