XAG/USD falls below $19.00 within the weekly triangle

  • Silver price fails to extend 2-day uptrend and has recently retreated from intraday highs.
  • 50-HMA reinforces weekly triangle support.
  • Hidden bearish RSI divergence teases XAG/USD sellers but a break of $18.60 is needed.

Silver (XAG/USD) prices remain sidelined around $18.75-80, fading the two-day uptrend during Wednesday’s Asian session as the bright metal trades within a weekly symmetrical triangle.

The gold bar’s recent inaction could be related to the mixed technical signals as the 50-HMA defends buyers, but the hidden bearish RSI divergence and continued trading below 200-HMA keeps the XAG/USD sellers hopeful. Also acting as an upward filter is the descending trendline from October 4th, which is at $19.50 at press time.

Therefore, commodity prices are likely to remain sideways unless they break the aforementioned triangle, which is currently between $18.90 and $18.65. However, the chances for the underside are high.

However, a clear break down from $18.65 could quickly pull the XAG/USD price towards the monthly low of $18.08. After that, the focus is on the yearly low marked in September at around $17.55.

On the downside, silver buyer dominance above $18.90 needs confirmation from the $19.00 barrier to target the 200 HMA level around $19.25. Nonetheless, the previously mentioned 2-week old resistance line will challenge the bulls around $19.50.

In a case where XAG/USD remains firmer above $19.50, the psychological magnet of $20.00 and the monthly high of $21.25 should catch the market‘s attention.

Silver hourly chart

Trend: Further weakness expected

Comments are closed.