Silver Price Analysis: XAG/USD offers aim for $22.40 resistance-turned-support
- Silver takes offers to refresh intraday low, snaps three-day uptrend.
- 10-DMA, one-month-old falling trend line restricts immediate downside.
- Sluggish Momentum line challenge bearish moves towards yearly low.
- Bulls need validation from $22.90 for fresh entries.
Silver (XAG/USD) prices print the day’s fresh low around $22.50, down 0.80% intraday while marking the first daily fall in four during early Tuesday.
Although failures to cross a six-week-old horizontal hurdle keeps XAG/USD sellers hopeful, a convergence of the 10-DMA and previous resistance line from early September, near $22.40, challenges the quote’s immediate declines.
Even if the bears manage to conquer the $22.40 strong support, the $22.00 threshold will add to the downside filters before dragging the metal towards the yearly low of $21.42.
It should be noted that the weaker Momentum line portrays the traders’ indecision, challenging the latest pullback.
However, the recovery moves need to cross the stated horizontal resistance near $22.90 to direct the silver buyers towards the $23.30 hurdle comprising lows marked during late August and early September.
Above all, silver’s bearish trajectory, as indicated by descending resistance line from July 6, around $23.90 by the press time, remains intact.
Silver: Daily chart
Trend: Pullback 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.
