Silver Price Analysis: Rising wedge on 4H keeps XAG/USD bulls cautious below $25.00
- Silver prints mild gains after Monday’s bounce off 50-bar SMA.
- Bearish chart pattern needs validation from a downside break of $23.60.
Silver prices pick up bids near $24.62, up 0.32% intraday, during early Tuesday. In doing so, the white metal extends the previous day’s U-turn from 50-bar SMA inside a bearish chart formation on the four-hour (4H) play.
It should, however, be noted that the quote’s sustained break of a three-week-old falling trend line currently propels the bullion towards the upper line of the stated wedge, currently around $25.00.
If at all the bulls manage to cross $25.00, November’s high near $26.00 should return to the charts.
Meanwhile, a downside break below the immediate support, previous resistance, at $24.37 now, will not only have to slip beneath the wedge’s support near $23.75 but also under the 50-bar SMA level of $23.60 to confirm further weakness.
Following that, the monthly bottom of $21.89 will be the key for the silver bears.
Silver four-hour chart
Trend: Pullback 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.
