Silver Price Analysis: XAG/USD justifies Tuesday’s bearish candlestick near $22.50
- Silver licks its wound around intraday low, down for the second consecutive day.
- Bearish candlestick formation directs sellers toward two-month-old horizontal support.
- Bulls may not risk taking the entries below late August lows.
Silver takes offers around $22.50, down 0.62% on a day ahead of Wednesday’s European session.
In doing so, the bright metal follows the bearish candlestick, namely Hanging man, flashed the previous day. However, bullish MACD and the key horizontal support line, stretched from August near $22.15, question further downside.
Even if the silver prices drop below $22.15, the $22.00 threshold will challenge the bears before directing them to the yearly low surrounding $21.42.
Meanwhile, recovery moves need to cross an area comprising multiple levels marked since August 20, around $22.85-90, to recall the silver buyers.
Following that, lows marked during the late August and early September, close to $23.30-35, may entertain them before directing the up-moves towards a three-month-old descending resistance line near $23.90.
Overall, XAG/USD remains in a bearish trajectory but short-term trading between $22.90 and $22.15 limits the quote’s immediate moves.
Silver: Daily 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.
