Silver Price Analysis: XAG/USD bears stay hopeful below $26.00, H&S in the offing
- Silver refreshes intraday low to pare weekly gains.
- Downbeat MACD conditions, bearish chart pattern favor sellers.
- Bulls need successful break of 50-HMA to reject bearish bias.
Silver (XAG/USD) prices renew daily low around $25.70, down over 1.0% intraday as it braces for the first negative week in six during Friday’s Asian session.
The bearish bias takes clues from MACD amid looming bear-cross, between the MACD line and the signal line. Also favoring the odds of the quote’s further downside is the failure to cross the 50-HMA.
Above all, the XAG/USD prices portray a Head-and-Shoulders (H&S) chart formation on the hourly play, which in turn teases the bears.
That said, a clear downside break of the neckline, around $25.30, will confirm the H&S formation and can direct the quote towards the mid-$23.00s. However, the $25.00 threshold may offer an intermediate halt during the fall.
Meanwhile, recovery moves need to cross the 50-HMA level surrounding $25.95 to recall the XAG/USD bulls, a break of which will could redirect the metal towards the monthly high of $26.95.
In a case where silver prices remain firmer above $26.95, also cross the $27.00 threshold, buyers can aim for June 2021 high near $28.55.
Silver: Hourly chart
Trend: Further weakness 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.
