Silver Price Analysis: Rising wedge confirmation lures XAG/USD bears towards $22.00

  • A three-day losing streak for silver validates a two-week-old bearish chart trend.
  • The price downside tendency for XAG/USD is strengthened by bearish MACD readings.
  • With a 200-SMA and $21.30 as buffers, $17.10 can be theoretically targeted.
  • Buyers of silver require proof from the golden Fibonacci ratio.

Prior to Wednesday’s European trading session, the silver price (XAG/USD) was in a three-day slump and was hovering around $22.30.

The recent decline in the price of the shining metal may be related to the confirmation of a bearish rising wedge chart pattern that has been present for two weeks as well as bearish MACD signals.

Nonetheless, the price is well-positioned to visit the $21.50 to $22.50 200-Simple Moving Average (SMA) support level before falling to the hypothetical goal of $17.10.

It’s important to keep in mind that the recent monthly low ($19.90) and the late-February swing high ($22.00) can serve as additional negative filters to keep an eye on if the XAG/USD price continues to decline.

On the other hand, the wedge’s lower line serves as a direct barrier for Silver’s current $22.70 price.

Then, near $22.85, the “golden Fibonacci ratio,” a 61.8% Fibonacci retracement of the metal’s decline between February and March, may pose a challenge to Silver purchasers.

The top line of the aforementioned bearish chart pattern joins the swing low from late January to indicate the $23.00 as a difficult level for the Silver bulls to overcome before ceding control to them in the event that the XAG/USD remains firmer beyond $22.85.