Silver Price Analysis: Rising wedge teases XAG/USD bears around mid-$20.00s
- Silver keeps pullback from six-week high inside a bearish chart pattern.
- Higher low on RSI backs firmer prices to suggest short-term grind towards the north.
- 200-SMA adds to the downside filters before directing sellers towards July’s low.
Silver price (XAG/USD) remains pressured at around $20.50, keeping the previous day’s pullback from the 1.5-month high marked the previous day. In doing so, the bright metal seesaws inside a fortnight-old rising wedge bearish chart pattern.
It should, however, be noted that the recent higher-low formation on prices gain support from the RSI (14), which in turn suggests a further grind of the quote towards the north.
However, a horizontal area comprising multiple levels marked since mid-June and the upper end of the rising wedge, around $20.85-90, appears a tough nut to crack for the XAG/USD bulls to crack.
Even if the bullion prices cross the $20.90 hurdle, the $21.00 round figure and late June swing high close to $21.55 should test the XAG/USD buyers before directing them to the six-week top surrounding $22.00.
Meanwhile, a downside break of the $20.10 will confirm the rising wedge, which in turn suggests the theoretical south-run towards $17.70.
It’s worth noting, however, that the convergence of the 200-SMA and a 38.2% Fibonacci retracement level of June-July downside, around $19.60-65, will precede the yearly bottom of $18.15 to challenge the metal bears.
XAG/USD: Four-hour chart
Trend: Limited upside 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.
