XAGUSD @ 0.56 – Support/Resistance analysis: Silver Price Analysis: Rising wedge confirmation favor bears above $20.00

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XAGUSD @ 0.56 – Support/Resistance analysis: Silver Price Analysis: Rising wedge confirmation favor bears above $20.00

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• Silver price remains pressured around one-week low, sidelined after two-day downtrend.
• 50-DMA challenges sellers after confirmation of the bearish chart pattern.
• Recovery remains elusive until the quote stays below 100-DMA.

The pair currently trades last at 0.56.

The previous day high was 20.31 while the previous day low was 19.91. The daily 38.2% Fib levels comes at 20.06, expected to provide resistance. Similarly, the daily 61.8% fib level is at 20.16, expected to provide resistance.

Silver price (XAG/USD) stays defensive around $20.10-15 as bears take a breather after a two-day downtrend near the weekly low. In doing so, the bright metal flirts with the 50-DMA support during Wednesday’s Asian session.

Even so, the early-week confirmation of the rising wedge and the RSI retreat keeps sellers hopeful.

That said, the $20.00 threshold appears to be the immediate support for the XAG/USD bears to watch to retake control.

Following that, the mid-July low near $19.40 could probe silver’s downside before challenging the yearly low near $18.15.

Alternatively, a corrective pullback may aim for the support line of the stated wedge, at $20.65 by the press time, ahead of directing the XAG/USD buyers towards the latest swing high near $20.85.

It’s worth noting, however, that a convergence of the 100-DMA and the wedge’s upper line, close to $21.50-60, appears a tough nut to crack for the silver buyers to cross afterward.

In a case where the quote remains firmer past $21.60, the odds of its run-up towards June’s peak of $22.50 can’t be ruled out.

Trend: Further weakness expected

Technical Levels: Supports and Resistances

XAGUSD currently trading at 20.14 at the time of writing. Pair opened at 20.14 and is trading with a change of 0.00% % .

The pair is trading above its 20 Daily moving average @ 19.82, below its 50 Daily moving average @ 20.16 , below its 100 Daily moving average @ 21.65 and below its 200 Daily moving average @ 22.68

The previous day high was 20.31 while the previous day low was 19.91. The daily 38.2% Fib levels comes at 20.06, expected to provide resistance. Similarly, the daily 61.8% fib level is at 20.16, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 19.93, 19.73, 19.54
• Pivot resistance is noted at 20.33, 20.51, 20.72

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