Silver Price Analysis: XAG/USD eases below $19.00 inside weekly triangle

Silver price fails to extend two-day uptrend, eases from intraday top of late.
50-HMA adds strength to the weekly triangle’s support.
Hidden bearish RSI divergence teases XAG/USD sellers but break of $18.60 is necessary.

Anil Panchal FXStreet

Silver price (XAG/USD) remains sidelined around $18.75-80, fading the two-day uptrend during Wednesday’s Asian session as the bright metal trades inside a weekly symmetrical triangle.

The bullion’s latest inaction could be linked to the mixed technical signals as the 50-HMA defends buyers but hidden bearish RSI divergence and the sustained trading below 200-HMA keeps the XAG/USD sellers hopeful. Also acting as an upside filter is the descending trend line from October 04, near $19.50 by the press time.

Hence, the commodity prices are likely to remain sideways unless breaking the aforementioned triangle, currently between $18.90 and $18.65. However, the odds favoring the downside are high.

That said, a clear downside break of $18.65 could quickly drag the XAG/USD price toward the monthly low of $18.08. Following that, the yearly low marked in September at around $17.55 will be in focus.

On the flip side, silver buyers’ dominance past $18.90 will need validation from the $19.00 threshold to aim for the 200-HMA level surrounding $19.25. Even so, the previously stated two-week-old resistance line will challenge the bulls around $19.50.

In a case where XAG/USD remains firmer past $19.50, the $20.00 psychological magnet and the monthly peak of $21.25 should gain the market’s attention.

Silver: Hourly chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	18.73
Today Daily Change	0.00
Today Daily Change %	0.00%
Today daily open	18.73

Trends
Daily SMA20	19.36
Daily SMA50	19.25
Daily SMA100	19.79
Daily SMA200	21.77

Levels
Previous Daily High	18.93
Previous Daily Low	18.55
Previous Weekly High	20.19
Previous Weekly Low	18.09
Previous Monthly High	20.02
Previous Monthly Low	17.56
Daily Fibonacci 38.2%	18.78
Daily Fibonacci 61.8%	18.69
Daily Pivot Point S1	18.54
Daily Pivot Point S2	18.36
Daily Pivot Point S3	18.16
Daily Pivot Point R1	18.92
Daily Pivot Point R2	19.12
Daily Pivot Point R3	19.3

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.

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