XAGUSD @ 4.25 – Support/Resistance analysis: Silver Price Analysis: Rising wedge teases bears around mid-$20.00s

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XAGUSD @ 4.25 – Support/Resistance analysis: Silver Price Analysis: Rising wedge teases bears around mid-$20.00s

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• Silver keeps pullback from six-week high inside a bearish chart pattern.
• Higher low on RSI backs firmer prices to suggest short-term grind towards the north.
• 200-SMA adds to the downside filters before directing sellers towards July’s low.

The pair currently trades last at 4.25.

The previous day high was 20.84 while the previous day low was 20.35. The daily 38.2% Fib levels comes at 20.65, expected to provide resistance. Similarly, the daily 61.8% fib level is at 20.54, expected to provide resistance.

Silver price (XAG/USD) remains pressured at around $20.50, keeping the previous day’s pullback from the 1.5-month high marked the previous day. In doing so, the bright metal seesaws inside a fortnight-old rising wedge bearish chart pattern.

It should, however, be noted that the recent higher-low formation on prices gain support from the RSI (14), which in turn suggests a further grind of the quote towards the north.

However, a horizontal area comprising multiple levels marked since mid-June and the upper end of the rising wedge, around $20.85-90, appears a tough nut to crack for the XAG/USD bulls to crack.

Even if the bullion prices cross the $20.90 hurdle, the $21.00 round figure and late June swing high close to $21.55 should test the XAG/USD buyers before directing them to the six-week top surrounding $22.00.

Meanwhile, a downside break of the $20.10 will confirm the rising wedge, which in turn suggests the theoretical south-run towards $17.70.

It’s worth noting, however, that the convergence of the 200-SMA and a 38.2% Fibonacci retracement level of June-July downside, around $19.60-65, will precede the yearly bottom of $18.15 to challenge the metal bears.

Trend: Limited upside expected

Technical Levels: Supports and Resistances

XAGUSD currently trading at 20.51 at the time of writing. Pair opened at 20.59 and is trading with a change of -0.39% % .

The pair is trading above its 20 Daily moving average @ 19.47, above its 50 Daily moving average @ 20.3 , below its 100 Daily moving average @ 21.84 and below its 200 Daily moving average @ 22.75

The previous day high was 20.84 while the previous day low was 20.35. The daily 38.2% Fib levels comes at 20.65, expected to provide resistance. Similarly, the daily 61.8% fib level is at 20.54, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 20.34, 20.1, 19.85
• Pivot resistance is noted at 20.84, 21.09, 21.33

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