Silver Price Analysis: Bearish-harami spurs XAG/USD’s fall beneath $23.00
- Silver falls to $22.75, continuing its losing streak for a fourth day due to rising yield pressures.
- Bearish harami and dip below key DMAs suggest more declines, eyeing $22.51 as next support.
- A rebound over $23.00 could push silver to retest DMAs, aiming for $24.00 resistance.
Silver’s falls for the fourth straight day, remaining below the $23.00 figure, as US Treasury bond yields advance, courtesy of strong economic data from the United States, preventing the Federal Reserve (Fed) from beginning to ease policy soon. At the time of writing, XAG/USD trades at $22.75, down 0.55%.
Since the XAG/USD completed the formation of a ‘bearish harami’ candlestick chart pattern on Monday, the grey metal has fallen from around the confluence of the 100 and 50-day moving averages (DMAs), at around $23.17-$23.10, exacerbating a plunge below the $23.00 figure. Relative Strength Index (RSI) studies suggest Silver’s price might extend its losses toward the December 13 low of $22.51, followed by the $22.00 figure. Once cleared, the next support would be the November 13 low of $21.88.
On the flip side, XAG/USD buyers need to reclaim the $23.00 mark so they could challenge the daily moving averages (DMAs) before aiming towards $24.00.
XAG/USD Price Action – Daily Chart
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
