Silver Price Analysis: XAG/USD bears battle $22.50 inside two-week-old falling channel
|- Silver remains depressed around lowest since September 25, flashed on Friday.
- Oversold RSI suggests bounce off short-term bearish chart pattern.
- 200-bar SMA can lure the bulls during the upside break to the channel.
Silver prices decline to $22.50, down 0.60% intraday, during Monday’s Asian session. The while metal dropped to the lowest in five weeks on Friday before bouncing off $22.33. However, failures to cross a downward sloping channel formation since November 16 keeps the sellers hopeful.
It should be noted that the oversold RSI conditions are likely to challenge the silver bears around the stated channel’s support line, at $22.18 now, failure to which can recall the $22.00 round-figure on the chart.
Also acting as the key downside support is September’s low near $21.65.
Alternatively, an upside clearance of the channel resistance, near $23.20, can trigger the run-up towards a 200-bar SMA level of $24.20.
During the quote’s further upside past-$24.20, the mid-month top around $25.10, and the monthly peak close to $26.00 will be in the spotlight.
Silver four-hour chart
Trend: Bearish
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.