XAG / USD justifies Tuesday’s candlestick near $ 22.50
- Silver is licking its wound around the intraday low, down for the second day in a row.
- The bearish candlestick pattern is drawing sellers to the two month old horizontal support.
- Bulls cannot risk taking entries below their late August lows.
Silver is accepting offers around $ 22.50, down 0.62% from the day before Wednesday’s European session.
The bright metal follows the bearish candle, namely Hanging Man, which lit up the day before. However, the bullish MACD and major horizontal support line that stretched near $ 22.15 in August challenge any further bearish move.
Even if silver falls below $ 22.15, the $ 22.00 line will challenge the bears before being dragged to the annual low of $ 21.42.
Meanwhile, recovery moves will have to traverse an area spanning multiple levels marked at $ 22.85-90 since August 20th to call silver buyers back.
Thereafter, the lows marked near $ 23.30-35 in late August and early September may sustain them before moving up moves towards a three-month-old descending resistance level near $ 23.90.
Overall, XAG / USD remains on a bearish rate, but short-term trading between $ 22.90 and $ 22.15 limits immediate price movements.
Silver: daily chart
Trend: further weakness expected