Silver Price Analysis: XAG/USD teasing rising channel breakdown on 1D, focus on Wednesday’s close – FXStreet

Gold & Silver
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  • Silver remains vulnerable with daily RSI still stays bearish.
  • XAG/USD teasing a rising channel breakdown on the daily chart.
  • 200-DMA is in sight for the XAG bears but Wednesday’s close is critical.

Silver (XAG/USD) extended its bearish momentum into the second straight day on Tuesday, now holding the lower ground above the $23 level.

The bears are gearing up for another leg lower, especially after the bulls managed to defend the rising trendline support, then at $23.23, avoiding a rising channel breakdown on the daily chart.

Therefore, Wednesday’s close below $23.29 is critical to confirming a bearish breakdown, which could open floors towards September lows of $21.65.

Acceptance below that level could expose the 200-daily moving average (DMA) support at $20.47.

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The 14-day Relative Strength Index (RSI) is on a recovery mode although turns flat at 39.45, indicating that a minor bounce could be in the offing before the sell-off resumes.

Alternatively, the bulls could attempt a bounce towards the powerful barrier around $24.20, the confluence of the 21 and 50-DMAs.

Further north, the bullish 100-DMA at $24.67 could challenge the bulls’ commitment.

XAG/USD: Daily chart

XAG/USD: Additional levels


 

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