XAG/USD falls to $18.00 within the fortnight triangle
- Silver remains under pressure for the third straight day inside the short-term symmetrical triangle.
- Bearish MACD signals, sustained trading below 100-SMA keeps sellers hopeful.
- The monthly high of 61.8% FE acts as an additional filter for trading.
Silver price (XAG/USD) remains depressed around $18.40 within a two week old symmetrical triangle. However, the bright metal has recently approached the support line of the indicated triangle.
Given the bearish MACD signals and the pair successfully trading below the 100-SMA, XAG/USD is likely to see further downside.
However, the lower line of the triangle around $18.25 appears to be the immediate support that metals traders should watch out for.
After that, the $18.00 threshold and 61.8% Fibonacci Expansion (FE) from July 5-20 near $17.80 could challenge the silver bears.
In a case where XAG/USD prices remain weak past $17.80, the possibility of a southbound run towards the June 2020 lows near $16.95 cannot be ruled out.
Alternatively, the upper line of the aforementioned triangle, around $18.90, precedes the round figure of $19.00, which also includes the 100-SMA that is constraining the XAG/USD pair’s near-term upside.
If silver buyers hold the reins past $19.00, the mid-July high will be on their radar near $19.40 and the psychological magnet of $20.00 thereafter.
Overall, silver remains under pressure around a multi-month low, but the short-term triangle may limit immediate moves.
Silver: four hour chart
Trend: Further weakness expected