Silver Price Analysis: XAG/USD offers aim for $22.40 resistance-turned-support
|- Silver takes offers to refresh intraday low, snaps three-day uptrend.
- 10-DMA, one-month-old falling trend line restricts immediate downside.
- Sluggish Momentum line challenge bearish moves towards yearly low.
- Bulls need validation from $22.90 for fresh entries.
Silver (XAG/USD) prices print the day’s fresh low around $22.50, down 0.80% intraday while marking the first daily fall in four during early Tuesday.
Although failures to cross a six-week-old horizontal hurdle keeps XAG/USD sellers hopeful, a convergence of the 10-DMA and previous resistance line from early September, near $22.40, challenges the quote’s immediate declines.
Even if the bears manage to conquer the $22.40 strong support, the $22.00 threshold will add to the downside filters before dragging the metal towards the yearly low of $21.42.
It should be noted that the weaker Momentum line portrays the traders’ indecision, challenging the latest pullback.
However, the recovery moves need to cross the stated horizontal resistance near $22.90 to direct the silver buyers towards the $23.30 hurdle comprising lows marked during late August and early September.
Above all, silver’s bearish trajectory, as indicated by descending resistance line from July 6, around $23.90 by the press time, remains intact.
Silver: Daily chart
Trend: Pullback 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.