Silver Price Analysis: Monday’s “hanging man” teases XAGUSD sellers below $21.00
- Silver price remains pressured after reversing from one-month high.
- Bearish candlestick formation, RSI’s nearness to overbought conditions favor short-term downside.
- Convergence of 200-DMA, three-month-old ascending trend line appears a tough nut to crack for bulls.
Silver price (XAGUSD) keeps the week-start losses around $20.75 during Tuesday’s Asian session. In doing so, the bright metal justifies the previous day’s bearish candlestick formation, namely the “hanging man”, at the one-month high.
Also supporting the short-term bearish bias is the RSI (14) which is near the overbought conditions.
It should be noted that the previous weekly top near $20.10 and the $20.00 could test the XAGUSD bears before directing them to the $19.45 support confluence including the 100-DMA and an upward-sloping trend line from October 14.
In a case where silver price remains bearish past $19.45, a gradual downturn towards the previous monthly low near $18.10 can’t be ruled out. During the fall, the $19.00 threshold may act as an intermediate halt.
On the flip side, a daily closing beyond October’s peak of $21.24 defies the bearish “hanging man,” candlestick.
Even so, a convergence of the 200-DMA and an ascending trend line from August, close to $21.50, will be a strong resistance for the XAGUSD bulls to cross.
Should the metal buyers manage to conquer the $21.50 hurdle, the odds of witnessing a run-up toward the mid-2022 peak surrounding $22.50 can’t be ruled out.
Silver price: Daily chart
Trend: Further weakness expected