Silver Price Analysis: Xag/usd Fades Recovery Inside Bearish Pennant, $22.00 In Focus

Silver Price Analysis: Xag/usd Fades Recovery Inside Bearish Pennant, $22.00 In Focus

  • Trade Ideas
  • Commodities
  • 2022, 12 May

Brief:

  • Silver prices remains sidelined after snapping four-day downtrend.
  • Bearish chart pattern, downbeat MACD signals keep sellers hopeful.
  • 100-HMA, weekly horizontal resistance adds to the upside filter.

Silver (XAG/USD) struggles to extend recovery moves from a two-year low inside immediate bearish pennant formation, taking rounds to $21.50 during Thursday’s Asian session.

In addition to a two-day-old bearish chart pattern, sluggish MACD signals also hint at a lack of buying momentum, which in turn keeps sellers waiting for a trigger to take fresh entry.

As a result, a downside break of the stated pennant’s support of around $21.40 will serve as the short-term key level to watch for fresh short positions.

Following that, the recent low of $21.18 and the $21.00 round figure may entertain traders ahead of directing them to the $20.00 threshold.

Meanwhile, recovery moves will have a tough time crossing the $22.00 level comprising the pennant’s upper line and the 100-HMA.

Also challenging the XAG/USD buyers is a weekly horizontal area surrounding $22.10-15.

Should silver buyers keep reins past $22.15, multiple hurdles near $22.85, $23.00 and the monthly peak of $23.28 could flash on their radars.

Suggestion:

Sell below 21.62 for 21.15 and 20.92

Else

Buy above 21.62 for 21.80 and 21.96

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