Silver Price Analysis: Rising wedge near multi-day high teases XAG/USD bears, $22.70 eyed
|- Silver prices retreats from seven-week high, portrays a bearish chart formation.
- Overbought RSI, sluggish MACD signals add strength to downside bias.
- Key SMAs can test the XAG/USD sellers; bulls need validation from $23.60.
Silver price (XAG/USD) drops to $23.00 as it snaps a two-day winning streak while reversing from the highest levels since early February on Friday. In doing so, the bright metal prints a one-week-old rising wedge bearish chart formation and lures the sellers due to the pattern’s positioning at the multi-day top.
Adding strength to the downside bias could be the sluggish MACD signals and the overbought conditions of the RSI (14) line.
As a result, the XAG/USD is likely to decline further toward the 61.8% Fibonacci retracement level of the metal’s fall during the February-March period, around $22.80.
However, the quote’s further declines hinge on its ability to break the stated wedge’s lower line, around $22.60 at the latest.
Following that, the 50-SMA and 200-SMA can entertain the XAG/USD sellers around $22.30 and $21.55 during the theoretical south-run towards the early March swing high surrounding $21.30.
Alternatively, recovery moves need to cross the $23.20 hurdle to defy the bearish chart formation.
Even so, multiple hurdles marked around $23.60 can prod the Silver buyers before directing them to the previous monthly high surrounding $24.65.
Overall, Silver price is likely to witness a pullback but the road towards the south appears limited.
Silver: Four-hour chart
Trend: Further downside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.