Bear flag teases XAG/USD seller above $19.00
- Silver prices are fading bullish momentum around the weekly high and are showing a bearish chart pattern.
- MACD signals are reinforcing the bearish bias, but 100-HMA continues to challenge on the downside.
- 200-HMA contributes to the XAG/USD up filters ahead of the flag high.
Silver price (XAG/USD) is declining towards $19.00 which was offered slightly near $19.20 during Friday’s first Asian session. As it does so, the bright metal is relaxing within the weekly ascending trend channel and forming part of a bear flag formation that suggests further downside.
In addition to the bearish chart pattern, MACD signals are also keeping the XAG/USD sellers hopeful.
However, the 100-HMA contributes to the downside filters around $19.05 in addition to the flag support line at $19.10. The $19.00 level is also acting as a support.
If the silver price falls below $19.00, it will confirm the south run (theoretically) towards $17.00. However, the monthly and yearly lows near $18.70 and $18.10, respectively, are testing the XAG/USD sellers during the expected decline.
On the contrary, silver buyers need to refresh the weekly high currently around $19.40 to regain market confidence.
Still, the 200-HMA and the upper line of the indicated flag near $19.45 and $19.50 in that order could challenge the XAG/USD buyers. After that, a rise towards the $20.00 level cannot be ruled out.
Silver: hourly chart
Trend: Further weakness expected