Home Silver Price Analysis: XAG/USD teasing rising channel breakdown on 1D, focus on Wednesday’s close
FXStreet News

Silver Price Analysis: XAG/USD teasing rising channel breakdown on 1D, focus on Wednesday’s close

  • Silver remains vulnerable with daily RSI still stays bearish.
  • XAG/USD teasing a rising channel breakdown on the daily chart.
  • 200-DMA is in sight for the XAG bears but Wednesday’s close is critical.

Silver (XAG/USD) extended its bearish momentum into the second straight day on Tuesday, now holding the lower ground above the $23 level.

The bears are gearing up for another leg lower, especially after the bulls managed to defend the rising trendline support, then at $23.23, avoiding a rising channel breakdown on the daily chart.

Therefore, Wednesday’s close below $23.29 is critical to confirming a bearish breakdown, which could open floors towards September lows of $21.65.

Acceptance below that level could expose the 200-daily moving average (DMA) support at $20.47.

The 14-day Relative Strength Index (RSI) is on a recovery mode although turns flat at 39.45, indicating that a minor bounce could be in the offing before the sell-off resumes.

Alternatively, the bulls could attempt a bounce towards the powerful barrier around $24.20, the confluence of the 21 and 50-DMAs.

Further north, the bullish 100-DMA at $24.67 could challenge the bulls’ commitment.

XAG/USD: Daily chart

XAG/USD: Additional levels

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.