Silver Price Analysis: Bear flag teases XAG/USD sellers above $19.00
- Silver price fades upside momentum around weekly top, portrays bearish chart pattern.
- MACD signals add strength to the bearish bias but 100-HMA challenges further downside.
- 200-HMA adds to the XAG/USD’s upside filters ahead of the flag’s top.
Silver price (XAG/USD) retreats towards $19.00, mildly offered near $19.20 during Friday’s initial Asian session. In doing so, the bright metal eases inside the weekly ascending trend channel forming the part of a bear flag formation suggesting further downside.
In addition to the bearish chart pattern, downbeat MACD signals also keep XAG/USD sellers hopeful.
However, the 100-HMA adds to the downside filters at around $19.05, in addition to the flag’s support line near $19.10. Also acting as support is the $19.00 threshold.
Should the silver price drops below $19.00, it confirms the south-run (theoretically) towards $17.00. Though, the monthly and the yearly lows, respectively near $18.70 and $18.10, probe the XAG/USD sellers during the anticipated fall.
On the contrary, silver buyers will have to refresh the weekly high, currently around $19.40, to regain the market’s confidence.
Even so, the 200-HMA and the upper line of the stated flag, close to $19.45 and $19.50 in that order, could challenge the XAG/USD buyers. Following that, a run-up towards the $20.00 threshold can’t be ruled out.
Silver: Hourly chart
Trend: Further weakness expected