Silver Price Analysis: Gravestone Doji, 10-dma Tests Xag/usd Bulls Below $22.00

Silver Price Analysis: Gravestone Doji, 10-dma Tests Xag/usd Bulls Below $22.00

  • Trade Ideas
  • Commodities
  • 2022, 18 May

Brief:

  • Silver prices struggle to extend monthly resistance breakout.
  • Bearish candlestick, 10-DMA probes upside momentum.
  • Impending bull cross on MACD, clear break of short-term resistance, not support, keeps buyers hopeful.

Silver (XAG/USD) steadies around $21.60, following a pullback from the weekly high, during Wednesday’s Asian session.

In doing so, the bright metal justifies Tuesday’s Gravestone Doji candlestick while also portraying failures to cross the 10-DMA, around $21.65 by the press time.

Even so, a looming bull cross of the MACD signal joins the metal’s successful break of a one-month-old resistance, now support around $21.20, to keep silver buyers hopeful.

Should the quote rises past $21.65, the $22.00 may offer an intermediate halt during the run-up to a monthly high near $23.30.

Meanwhile, a downside break of the resistance-turned-support, near $21.20, won’t hesitate to direct XAG/USD towards the multi-month low marked in May around $20.45.

Following that, the $20.00 psychological magnet will be crucial for the bears to watch.

Overall, silver remains directed towards the north but short-term hurdles test recovery moves.

Suggestion:

Sell below 21.70 for 21.40 and 21.25

Else

Buy above 21.70 for 21.81 and 21.92

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