Silver Price Analysis: XAG/USD dips below $22 as bearish harami pattern looms
- Silver price struggles beneath the $22 mark, forming a bearish 'harami' pattern on daily charts.
- Potential bearish continuation looms, with sights set on the October 9 low of $21.57.
- Recovery above $22.00 necessitates claiming $22.11, with subsequent hurdles noted at 20-day EMA.
Silver price (XAG/USD) loses some of its bright, retreats from around weekly highs of $22.01 and is back below the figure, exchanging hands at around $21.75, even though US Treasury bond yields continued to extend their losses.
The daily chart portrays the white metal was shy of reclaiming the June 23 swing low of $23.11, but failure to do it, exacerbated selling pressure at around the $22.00 mark. Consequently, XAG/USD dropped and is forming a two-candlestick bearish pattern, called a ‘bearish-harami’, the equivalent of an ‘inside day.’ A bearish continuation would happen, once Silver price slides below the October 9 swing low of $21.57, putting into play a test of the year-to-date (YTD) low of $19.90.
On the other hand, if XAG/USD recovers the $22.00 figure, buyers must claim a June 23 low of $22.11. A breach of the latter will expose the 20-day Exponential Moving Average (EMA) at $22.38 before testing the 50-day moving average (DMA) at $22.98.
XAG/USD Price Action – Daily chart
XAG/USD Technical Levels
Author
Christian Borjon Valencia
FXStreet
Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.
