Silver Price Analysis: Rising wedge confirmation favors XAGUSD bears near $21.00
- Silver price holds lower ground after confirming a bearish chart pattern.
- MACD conditions, clear break below November’s top add strength to the bearish bias for XAGUSD.
- 200-SMA appears strong support to watch during further downside, bulls need validation from $21.30 to return.
Silver price (XAGUSD) justifies the rising wedge confirmation as sellers attack $21.00 during Thursday’s Asian session. In doing so, the bright metal defends the previous day’s bearish move, the biggest daily fall in a week.
Not only the rising wedge confirmation but bearish MACD signals and the metal’s sustained break of the previous monthly peak also keeps the sellers hopeful.
That said, the $21.00 and the $20.00 round figures gain the short-term seller’s attention before a horizontal area comprising multiple levels marked since late September, around $19.90, challenges the XAGUSD bears.
Also acting as the key support is the 200-SMA level surrounding $19.50, a break of which won’t hesitate to print the theoretical target near $18.00.
Meanwhile, XAGUSD buyers may have a tough time in returning to the table as the support line of the stated wedge joins October’s peak to highlight $21.30 as the crucial upside barrier.
Following that, a one-week-old ascending resistance line near $21.90 and the $22.00 threshold could lure the silver buyers before June’s peak near $22.50.
Silver price: Four-hour chart
Trend: Further downside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
