Xag/usd Retreats From Key Resistance Towards $19.00

Xag/usd Retreats From Key Resistance Towards $19.00

  • Trade Ideas
  • Commodities
  • 2022, 22 September

Brief:

  • Silver price pokes 50-DMA as traders reverse latest gains.
  • Monthly support line adds to the downside filters.
  • MACD, RSI hints at receding bullish bias, $18.30 appears a tough nut to crack for sellers.

Silver price (XAG/USD) remains pressured around $19.30 while reversing the previous day’s upside momentum heading into Thursday’s European open. In doing so, the bright metal pokes the 50-DMA support while reversing from the downward-sloping resistance line from early June.

Not only the pullback from the key resistance line but the recent retreat of the RSI and the MACD line also keeps the XAG/USD sellers hopeful.

However, an upward sloping support line from September 01, around $19.20, could act as an extra challenge for the metal bears, in addition to the 50-DMA support of $19.30.

In a case where the quote breaks the $19.20 support, a quick fall towards the $19.00 can’t be ruled out.

Following that, a horizontal support area comprising multiple levels marked since mid-July, near $18.30-25, could act as the last defense of silver buyers.

Alternatively, recovery moves need to cross the aforementioned resistance line, at $19.90 by the press time, to convince buyers.

Even so, the monthly high near the $20.00 threshold and the previous month’s peak of $20.87 could challenge the XAG/USD upside afterward.

Suggestion:

Buy above 19.49 for 19.74 and 19.95

Else

Sell below 19.49 for 19.30 and 19.16

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