Silver Price Analysis: XAU/USD looks to $23.00 as RSI divergence contrasts bearish flag

Silver takes the bids inside a bearish chart pattern, RSI, MACD favor buyers.
Convergence of 100-EMA, three-week-old resistance line challenges bulls.
Bears seek a clear break of $22.40 for fresh entries.

Anil Panchal FXStreet

Silver (XAG/USD) extends the previous day’s recovery moves, up over 1.0% daily while taking bids around $22.75 during early Wednesday.

With this, the bright metal stays inside a short-term bearish flag pattern while respecting the RSI divergence and bullish MACD signals.

However, further upside needs to stay beyond $22.85 before eyeing the latest swing top near $23.13.

Also acting as the key upside filter is the confluence of 100-EMA and a descending trend line from September 07, around $23.45.

Meanwhile, a downside break of $22.40 will confirm the bearish chart pattern, theoretically suggesting a south-run towards $20.40. Though, the yearly low of $22.00 and the September 2020 bottom near $21.65 seem tough challenges for the silver sellers.

Also acting as a downside filter is the $20.00 threshold and November 2020 trough close to $21.90.

Overall, silver remains pressured towards the yearly low unless crossing $22.40.

Silver: Four-hour chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	22.73
Today Daily Change	0.24
Today Daily Change %	1.07%
Today daily open	22.49

Trends
Daily SMA20	23.72
Daily SMA50	24.25
Daily SMA100	25.64
Daily SMA200	25.86

Levels
Previous Daily High	22.72
Previous Daily Low	22.24
Previous Weekly High	23.97
Previous Weekly Low	22.33
Previous Monthly High	26
Previous Monthly Low	22.17
Daily Fibonacci 38.2%	22.54
Daily Fibonacci 61.8%	22.43
Daily Pivot Point S1	22.25
Daily Pivot Point S2	22.01
Daily Pivot Point S3	21.77
Daily Pivot Point R1	22.73
Daily Pivot Point R2	22.97
Daily Pivot Point R3	23.21

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.

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