Silver Price Analysis: Head-and-shoulders on 1H keeps XAG/USD bears hopeful around $26.00
|- Silver remains depressed around intraday low, teases confirmation of a bearish chart pattern.
- Pullback from 200-HMA, downbeat Momentum add strength to the downside bias.
- Two-day-old falling trend line adds to the upside barriers.
Silver (XAG/USD) flirts with a bearish formation, namely the head-and-shoulders, as easing to $26.10, down 0.13% intraday, amid Thursday’s Asian session.
Not only the metal’s trading near the neckline of the stated bearish pattern but downward sloping Momentum line and a U-turn from 200-HMA resistance also back the sellers.
However, a clear downside break of the $26.00 threshold will be required before giving rise to hopes of a slump towards the theoretical target below the previous month’s low to $25.30.
During the fall, June’s bottom surrounding $25.50 may act as an intermediate halt whereas the $25.00 may probe silver bears afterward.
Alternatively, an upside break of 200-HMA, around $26.20, will trigger corrective pullback towards the short-term resistance line near $26.30, a break of which will propel buyers to defy the downtrend-suggesting pattern while targeting $26.50.
Overall, pares recent bounce off multi-day low and hence sellers’ expectations are justified.
Silver: Hourly chart
Trend: Further weakness expected
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