Silver Price Analysis: XAG/USD stays mildly bid within $0.40 trading range below $22.00
- Silver price prints minor gains inside immediate trading range established from Monday.
- 200-EMA, three-week-old horizontal resistance restricts short-term XAG/USD moves.
- RSI’s retreat from overbought territory, looming bear cross on MACD lure the Silver sellers.
- Road towards the south appears bumpier; bulls need validation from $22.60.
Silver price (XAG/USD) eases to $21.70 as it pares the intraday gains heading into Wednesday’s European session. In doing so, the bright metal defends a three-day-old trading range even as the bearish signals have recently gained momentum.
That said, the 200-bar Exponential Moving Average (EMA) puts a floor under the XAG/USD price of around $21.60 while a three-week-long horizontal line, around $22.00, restricts the metal’s short-term upside since the last Monday.
It should, however, be noted that the RSI, on a 14 period setting, eases from the overbought territory and joins the impending bear cross on the MACD signals to tease the Silver sellers.
A horizontal support comprising multiple levels marked since February 17, close to $21.20, could lure the XAG/USD bears on the break of $22.00.
In a case where the bullion remains bearish past $21.20, a fortnight-long broad support zone between $20.30 and $20.40, could challenge the sellers.
Alternatively, a clear upside break of the $22.00 hurdle will need validation from multiple tops marked during early February around $22.60 to convince the Silver buyers.
Overall, the Silver price remains sidelined but the bears are lurking behind the immediate support.
Silver price: Four-hour chart
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Trend: Limited downside 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.
