- Silver remains sidelined after stepping back from three-week high.
- Sluggish Momentum line challenges buyers to keep bounce off double-bottom around yearly low.
- 50-DMA, 200-DMA adds to the upside filters, bears can aim for June 2020 levels on a clear break of $21.40.
Silver (XAG/USD) keeps pullback from the monthly top, stays pressured around $22.50 during Wednesday’s Asian session. In doing so, the bright metal registers failures to cross the 21-DMA while staying above the double bottoms marked during September and December.
Given the sluggish Momentum line and failures to cross the immediate DMA, the silver prices are likely to ease further towards the $22.00 threshold.
However, the quote’s weakness past $22.00 will be crucial as the XAG/USD bears will seek a clear downside break of $21.40 to confirm the bearish chart pattern, which in turn will theoretically highlight $17.50 as the next level.
Though, the $20.00 psychological magnet and September 2019 peak near $19.65 will be important to watch during the anticipated fall.
On the flip side, a clear break of 21-DMA level of $22.52 won’t be enough for the silver buyers to tighten the grips as 50-DMA will be a tough nut to crack around $23.50.
It’s worth noting that the XAG/USD bulls will be convinced if the commodity prices trade successfully above the 200-DMA level of $24.85.
Silver: Daily chart
Trend: Pullback expected