Silver Price Analysis: XAG/USD fades recovery inside bearish pennant, $22.00 in focus
- Silver prices remains sidelined after snapping four-day downtrend.
- Bearish chart pattern, downbeat MACD signals keep sellers hopeful.
- 100-HMA, weekly horizontal resistance adds to the upside filter.
Silver (XAG/USD) struggles to extend recovery moves from a two-year low inside immediate bearish pennant formation, taking rounds to $21.50 during Thursday’s Asian session.
In addition to a two-day-old bearish chart pattern, sluggish MACD signals also hint at a lack of buying momentum, which in turn keeps sellers waiting for a trigger to take fresh entry.
As a result, a downside break of the stated pennant’s support of around $21.40 will serve as the short-term key level to watch for fresh short positions.
Following that, the recent low of $21.18 and the $21.00 round figure may entertain traders ahead of directing them to the $20.00 threshold.
Meanwhile, recovery moves will have a tough time crossing the $22.00 level comprising the pennant’s upper line and the 100-HMA.
Also challenging the XAG/USD buyers is a weekly horizontal area surrounding $22.10-15.
Should silver buyers keep reins past $22.15, multiple hurdles near $22.85, $23.00 and the monthly peak of $23.28 could flash on their radars.
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.
