Silver Price Analysis: XAG/USD confirms rising wedge bearish pattern below $22.00
- Silver extends pullback from a two-week top, pressured around intraday low of late.
- Confirmation of a bearish chart pattern, downbeat MACD signals favor sellers.
- 50-SMA, monthly act as intermediate halts during the theoretical slump towards $20.00.
Silver (XAG/USD) remains on the back foot around the daily bottom, keeping the pullback from a fortnight high, as sellers flirt with $21.75-70 during Tuesday’s Asian session.
In doing so, the silver prices tease bears by confirming the one-week-old rising wedge bearish chart pattern. Bearish MACD signals also back the rising wedge confirmation and add strength to the downside hopes.
That said, the 50-SMA level of $21.48 and the $21.00 threshold may entertain silver sellers ahead of directing them to the monthly low of $20.45.
It’s worth noting that the XAG/USD weakness past $20.45 will aim for the stated wedge confirmation’s theoretical target surrounding $20.00.
On the flip side, corrective pullback needs to cross the 61.8% Fibonacci retracement of May 05-13 downside, around $22.20, to restore the silver buyer’s confidence.
Following that, the upside momentum will aim for the monthly high near $23.30.
Silver: Four-hour chart
Trend: Further downside 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.
