- Silver prices remain under pressure after confirming a three-week-old bearish chart trend.
- MACD and RSI conditions join the recent pullback from 50-SMA to keep sellers bullish.
- 200-SMA may offer intermediate support during the theoretical collapse towards an area below $18.00.
The price of silver (XAG/USD) is holding near $20.20 after confirming a bearish formation, namely a rising wedge, the previous day. That said, the shiny metal’s pullback from the 50-SMA and bearish oscillators also favor sellers in Tuesday’s Asian session.
It should be noted, however, that the $20.00 threshold and the 200-SMA around $19.50 could limit the short-term decline in commodity prices.
Following this, several levels near $19.00 and the yearly low marked in July around $18.15 could test the XAG/USD bears before highlighting the theoretical target around $17.80.
Meanwhile, the 50-SMA level around $20.40 defies the corrective price pullback before the lower line of the indicated wedge near $20.50 at the latest.
Even if silver bulls manage to clear the $20.50 hurdle, an ascending trendline from August 1, forming part of the wedge, may challenge the metal’s further advances near the 21 threshold, $00.
Overall, silver’s confirmation of a rising wedge joins the bearish MACD and RSI in suggesting further decline for the metal.
Silver: four-hour chart
Trend: further weakness expected