Silver Price Analysis: XAG/USD bears flex muscles within fortnight-old triangle, $23.50 is the key


  • Silver price remains pressured for the second consecutive day within bearish triangle.
  • Failure to cross 200-EMA, bearish MACD signals favor XAG/USD sellers.
  • Bulls need validation from $24.25 to retake control.

 

Silver Price (XAG/USD) stays depressed around the intraday low of $23.50 heading into Monday’s European session. In doing so, the bright metal prods the bottom line of a two-week-old ascending triangle while extending the previous day’s pullback from the 200-bar Exponential Moving Average (EMA).

Apart from the failure to cross the key EMA and the existence of the bearish chart pattern, the downbeat MACD signals also lure the XAG/USD sellers.

However, a clear break of $23.50 becomes necessary to confirm the bearish chart formation suggesting a theoretical fall toward $22.20.

That said, the previous monthly low of around $22.70 may act as an extra filter towards the theoretical target whereas the 61.8% Fibonacci Expansion (FE) of its May 10 to June 02 moves, near $22.00, can prod the Silver bears afterward.

On the flip side, a recovery moves not only needs validation from the 200-EMA hurdle of around $23.95 but also needs to defy the triangle formation by crossing the stated pattern’s top line, close to $24.00 by the press time.

Even so, a one-month-old horizontal resistance area around $24.25 can challenge the XAG/USD bulls before giving them control.

Silver Price: Four-hour chart

Trend: Further downside expected

Additional important levels

Overview
Today last price 23.53
Today Daily Change -0.08
Today Daily Change % -0.34%
Today daily open 23.61
 
Trends
Daily SMA20 23.86
Daily SMA50 24.45
Daily SMA100 23.36
Daily SMA200 22.12
 
Levels
Previous Daily High 24.02
Previous Daily Low 23.58
Previous Weekly High 24.02
Previous Weekly Low 22.93
Previous Monthly High 26.14
Previous Monthly Low 22.68
Daily Fibonacci 38.2% 23.75
Daily Fibonacci 61.8% 23.85
Daily Pivot Point S1 23.45
Daily Pivot Point S2 23.3
Daily Pivot Point S3 23.01
Daily Pivot Point R1 23.9
Daily Pivot Point R2 24.18
Daily Pivot Point R3 24.34

 

 

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