XAU / USD looks to $ 23.00 as the RSI divergence faces the bearish flag
- Silver takes the bids within a bearish chart pattern, RSI, MACD buyers prefer.
- The convergence of 100-EMA, the three-week-old resistance level, is challenging the bulls.
- Bears are looking for a clear fraction of $ 22.40 for new entries.
Silver (XAG / USD) extends the previous day’s recovery moves by over 1.0% daily as it bids at $ 22.75 early Wednesday.
With this, the bright metal will stay within a short-term bearish flag pattern while respecting the RSI divergence and the bullish MACD signals.
However, the further uptrend needs to stay above $ 22.85 before targeting the recent swing top at $ 23.13.
The most important upward filter is also the confluence of 100-EMA and a descending trendline from September 7th at around USD 23.45.
Meanwhile, a break of $ 22.40 down will confirm the bearish chart pattern, theoretically pointing south towards $ 20.40. However, the annual low of $ 22.00 and the September 2020 low of $ 21.65 appear to be tough challenges for silver sellers.
The US $ 20.00 threshold and November 2020 low near US $ 21.90 also act as a downward filter.
Overall, silver remains under pressure towards the yearly lows unless it breaks above $ 22.40.
Silver: four-hour chart
Trend: withdrawal expected