Silver Price Analysis: XAG/USD teasing rising channel breakdown on 1D, focus on Wednesday’s close
|- Silver remains vulnerable with daily RSI still stays bearish.
- XAG/USD teasing a rising channel breakdown on the daily chart.
- 200-DMA is in sight for the XAG bears but Wednesday’s close is critical.
Silver (XAG/USD) extended its bearish momentum into the second straight day on Tuesday, now holding the lower ground above the $23 level.
The bears are gearing up for another leg lower, especially after the bulls managed to defend the rising trendline support, then at $23.23, avoiding a rising channel breakdown on the daily chart.
Therefore, Wednesday’s close below $23.29 is critical to confirming a bearish breakdown, which could open floors towards September lows of $21.65.
Acceptance below that level could expose the 200-daily moving average (DMA) support at $20.47.
The 14-day Relative Strength Index (RSI) is on a recovery mode although turns flat at 39.45, indicating that a minor bounce could be in the offing before the sell-off resumes.
Alternatively, the bulls could attempt a bounce towards the powerful barrier around $24.20, the confluence of the 21 and 50-DMAs.
Further north, the bullish 100-DMA at $24.67 could challenge the bulls’ commitment.
XAG/USD: Daily chart
XAG/USD: Additional levels
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.