Silver Price Analysis: XAG/USD bulls struggle near $23.00 within falling wedge

Silver Price pares intraday losses, the first in four days, inside bullish chart formation.
Clear break of 200-DMA, bullish MACD signals favor XAG/USD buyers.
100-DMA adds strength to wedge’s top line, making $23.40 the key hurdle toward the north.

Anil Panchal FXStreet

Silver Price (XAG/USD) fades upside momentum around the weekly top surrounding $23.00 amid an early Asian session on Wednesday, following the four-day uptrend. In doing so, the XAG/USD bulls appear taking a breather within a two-month-old falling wedge bullish chart formation.

In addition to the falling wedge chart pattern, the Silver Price run-up beyond the 200-DMA and bullish MACD signals also keep the buyers hopeful.

As a result, the XAG/USD’s latest retreat appears elusive unless the quote offers a daily closing below the 200-DMA level of around $22.60.

Even so, the previous monthly low of near $22.10, the $22.00 round figure and the stated wedge’s bottom line, close to $21.85 at the latest, can challenge the Silver bears.

In a case where the XAG/USD remains weak past $21.85, it defies the bullish chart pattern and becomes vulnerable to revisit the $20.00 psychological magnet.

On the flip side, a convergence of the 100-DMA and the stated wedge’s top line, near $23.40, becomes a crucial resistance to watch during the Silver Price advances.

Following that, the previous support line stretched from early March, surrounding $24.20, can act as a buffer during the metal’s run-up towards the theoretical target of the falling wedge breakout, around $27.40.

It should be noted that the $25.00 threshold and the previous monthly high near $26.15 can also prod the Silver buyers between $24.20 and $27.40.

Silver Price: Daily chart

Trend: Limited upside expected

Additional important levels

Overview
Today last price	22.98
Today Daily Change	-0.02
Today Daily Change %	-0.09%
Today daily open	23

Trends
Daily SMA20	23.29
Daily SMA50	23.86
Daily SMA100	23.37
Daily SMA200	22.61

Levels
Previous Daily High	23.06
Previous Daily Low	22.88
Previous Weekly High	23.1
Previous Weekly Low	22.28
Previous Monthly High	24.53
Previous Monthly Low	22.11
Daily Fibonacci 38.2%	22.99
Daily Fibonacci 61.8%	22.95
Daily Pivot Point S1	22.89
Daily Pivot Point S2	22.79
Daily Pivot Point S3	22.71
Daily Pivot Point R1	23.08
Daily Pivot Point R2	23.16
Daily Pivot Point R3	23.26

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.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.