Silver Price Analysis: XAG/USD steadies above $21.00 inside short-term triangle
- Silver price remains sidelined inside a two-week-old symmetrical triangle.
- 200-HMA offers intermediate halt amid downbeat MACD, RSI signals.
- Bulls need validation from $21.70 to aim for a monthly high.
Silver price (XAG/USD) fades the previous day’s recovery moves from a one-week low, taking rounds to $21.25-30 during Wednesday’s Asian session.
In doing so, the bright metal stays inside a fortnight-long symmetrical triangle while defending the previous day’s upside break of the 200-HMA.
It’s worth noting, however, that the bearish Moving Average Convergence and Divergence (MACD) signals and the downward-sloping Relative Strength Index (RSI) placed at 14, not oversold, seem to tease the bears.
A clear break of the 200-HMA support near $21.15 becomes necessary to tease the XAG/USD bears. Even so, the $21.00 round figures and lower line of the aforementioned triangle, around $20.95 by the press time, could challenge the bullion’s further downside.
In a case where the Silver price drops below $20.95, the November 07 low near $20.40 appears crucial for sellers as a break which could quickly direct the quote towards the monthly low of $18.83.
Meanwhile, recovery moves not only need to cross the stated triangle’s upper line, close to $21.50 at the latest, but also need validation from the $21.70 to convince the buyers.
Following that, a run-up towards the monthly top surrounding $22.25 can’t be ruled out.
Silver: Hourly chart
Trend: Further downside expected