Silver Price Analysis: XAG/USD seesaws near $24.00 inside monthly rising wedge
|- Silver grinds higher around one-month high, stays inside bearish chart pattern.
- 200-DMA, 14-week-old resistance line challenge immediate upside, bullish MACD favor buyers.
- Bears need validation from $23.70 while 50% Fibonacci retracement acts as another strong support.
After rising for three consecutive weeks, silver (XAG/USD) prices remain on the front foot around $24.00 during Monday’s Asian session.
In doing so, the bright metal pokes the highest levels last seen on January 24 while taking rounds to 61.8% Fibonacci retracement of November-December 2021 downside.
It should be noted, however, that the bullish MACD signals keep silver buyers hopeful to refresh monthly top.
That said, the 200-DMA and a descending trend line from late November, respectively around $24.25 and $24.35, become tough nuts to crack for the XAG/USD bulls.
Following that, the upper line of a three-week-old rising wedge bearish chart pattern and January’s peak, near $24.50 and $24.70 in that order, will challenge the commodity buyers.
Alternatively, a clear downside break of the 61.8% Fibo. level near $23.90 will attack the wedge’s lower line, near $23.70 at the latest.
Also acting as the key support is the $23.40 level comprising highs marked during late December and early January, as well as 50% Fibonacci retracement.
Should the silver bears manage to keep reins past $23.40, the 2022 bottom surrounding $21.95 will be in focus.
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.