XAG/USD fading rebound inside bearish pennant, $22.00 in focus
- Silver price remains offside after latching four-day downtrend.
- Bearish chart pattern, weak MACD signals keep sellers hopeful.
- 100-HMA weekly horizontal resistance adds to upper filter.
Silver (XAG/USD) is struggling to extend recovery moves from a two-year low within an imminent bearish pennant formation, rounding to $21.50 during Thursday’s Asian session.
In addition to a two-day-old bearish chart pattern, sluggish MACD signals also suggest a lack of buying momentum, leaving sellers waiting for a trigger to re-enter.
As a result, a downside break of the indicated pennant support around $21.40 will serve as a key near-term level where to look for fresh short positions.
After that, the recent low of $21.18 and the round figure of $21.00 could entertain traders before guiding them towards the $20.00 line.
Meanwhile, recovery moves will have a hard time breaching the $22.00 level, which includes the pennant upper line and the 100-HMA.
Another challenge for the XAG/USD buyers is a weekly horizontal range around $22.10-$15.
Should silver buyers hold the reins above $22.15, multiple hurdles could flash on their radar near $22.85, $23.00 and the monthly high of $23.28.
Silver: hourly chart
Trend: Further weakness expected