Silver Price Analysis: XAG/USD forms a bearish tweezers top, seller's eye $22.00
- Silver prices (XAG/USD) are struggling to maintain the upward momentum that started last Monday, currently facing consecutive days of losses.
- The formation of a ‘tweezers-top’ chart pattern in XAG/USD suggests a potential for further decline, with the current price at $23.48, down by 0.92%.
- If sellers maintain control and keep the price below $24.00, a pullback towards the 200-DMA is likely, with further potential decline towards the $23.00 mark.
Silver price struggles to extend its rally that began last Monday, posting back-to-back days of losses, due to a risk-on impulse, despite overall US Dollar (USD) weakness across the board. From a price action standpoint, the XAG/USD formed a ‘tweezers-top’ chart pattern, which warrants further downward action is expected; hence, XAG/USD is trading at $23.48, down 0.92%.
After forming the ‘tweezers top’, the XAG/USD resumed its downtrend but it was capped by the 200-day moving average (DMA) at $23.28 before resuming above the November 16 daily low of $23.28. A daily close above the latter could open the door to re-test the $24.00 figure.
On the other hand, if sellers stepped in, and kept prices below the $24.00 mark, the chances for a pullback to the 200-DMA increase, followed by the $23.00 mark. Further downside is expected beneath that level, exposing the latest cycle low seen at $21.88, the November 13 low.
Silver Price Analysis – Daily Chart
Silver Technical Levels
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
