Silver Price Analysis: XAG/USD eases to $22.50 inside weekly rising wedge
|- Silver consolidates recent gains during three-day uptrend, stays inside bearish chart pattern.
- RSI pullback from overbought territory signals further weakness, 100-HMA offers immediate support.
- 200-HMA acts as a tough nut to crack for bulls.
Silver (XAG/USD) prices pare early day gains around $22.50 heading into Tuesday’s European session.
In doing so, the bright metal stays inside an immediate rising wedge bearish chart pattern.
Given the recent RSI retreat from overbought territory, the commodity’s latest weakness is likely to test the 100-HMA support of $22.45. However, any further weakness will be challenged by the stated wedge’s support line, near $22.40 at the latest.
Should the quote drop below $22.40, the odds of its slump to the monthly low near $21.95 can’t be ruled out.
It’s worth mentioning that the bottom marked during September and December months of 2021, around $21.40, becomes crucial support to watch afterward.
Alternatively, a clear upside break of $22.60 immediate resistance line, forming part of the wedge, will escalate rebound towards the 200-HMA level of $22.73.
Following that, a one-week-old descending trend line around $23.00 will gain the market’s attention.
Silver: Hourly chart
Trend: Further weakness expected
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