XAGUSD @ 8.31 – Support/Resistance analysis: Silver Price Analysis: justifies rising wedge break as bears approach $20.00

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XAGUSD @ 8.31 – Support/Resistance analysis: Silver Price Analysis: justifies rising wedge break as bears approach $20.00

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• Silver prices remain pressured after confirming three-week-old bearish chart pattern.
• MACD, RSI conditions join recent pullback from 50-SMA to keep sellers hopeful.
• 200-SMA can offer intermediate support during theoretical slump towards sub-$18.00 area.

The pair currently trades last at 8.31.

The previous day high was 20.84 while the previous day low was 20.24. The daily 38.2% Fib levels comes at 20.61, expected to provide resistance. Similarly, the daily 61.8% fib level is at 20.47, expected to provide resistance.

Silver price (XAG/USD) holds lower ground near $20.20 after confirming a bearish formation, namely a rising wedge, the previous day. That said, the bright metal’s pullback from the 50-SMA and the downbeat oscillators also favor the sellers during Tuesday’s Asian session.

It should, however, be noted that the $20.00 threshold and the 200-SMA around $19.50 could restrict the short-term downside of the commodity prices.

Following that, multiple levels near $19.00 and the yearly low marked in July around $18.15 might test the XAG/USD bears before highlighting the theoretical target surrounding $17.80.

Meanwhile, the 50-SMA level around $20.40 challenges the quote’s corrective pullback ahead of the stated wedge’s lower line, close to $20.50 at the latest.

Even if the silver buyers manage to cross the $20.50 hurdle an upward sloping trend line from August 01, forming part of the wedge, can challenge the metal’s further advances near the $21.00 Threshold.

Overall, silver’s confirmation of rising wedge joins downbeat MACD and RSI to suggest the metal’s further downside.

Trend: Further weakness expected

Technical Levels: Supports and Resistances

XAGUSD currently trading at 20.24 at the time of writing. Pair opened at 20.84 and is trading with a change of -2.88% % .

The pair is trading above its 20 Daily moving average @ 19.67, below its 50 Daily moving average @ 20.24 , below its 100 Daily moving average @ 21.75 and below its 200 Daily moving average @ 22.72

The previous day high was 20.84 while the previous day low was 20.24. The daily 38.2% Fib levels comes at 20.61, expected to provide resistance. Similarly, the daily 61.8% fib level is at 20.47, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 20.44, 20.04, 19.84
• Pivot resistance is noted at 21.04, 21.24, 21.64

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