Rising wedge teases XAG/USD bears around mid-$20.00
- Silver is maintaining the pullback from the six-week high within a bearish chart pattern.
- A higher low on the RSI supports firmer prices, suggesting a grind north in the near term.
- The 200-SMA contributes to the downside filters before leading sellers towards the July lows.
Silver price (XAG/USD) remains under pressure around $20.50, maintaining yesterday’s pullback from yesterday’s 1.5-month high. The bright metal is teetering within a fortnight declining chart pattern with a rising wedge.
However, it should be noted that the recent higher-low formation in prices is supported by the RSI (14), which in turn suggests further northward loops in the price.
A horizontal range encompassing multiple levels marked since mid-June and the top of the rising wedge around $20.85-$90 looks like a tough nut to crack for the XAG/USD bulls.
Even if precious metals prices surpass the $20.90 hurdle, the $21.00 round figure and late June high near $21.55 should test XAG/USD buyers before moving onto the six-week -High to be steered around $22.00.
Meanwhile, a downside break from $20.10 will confirm the rising wedge, again suggesting a theoretical southbound run towards $17.70.
However, it is worth noting that the convergence of the 200-SMA and a 38.2% Fibonacci retracement level from June-July to the downside, around $19.60-65, will precede the yearly low of $18.15 to close the Challenge Metal Bears.
XAG/USD: four hour chart
Trend: Limited upside expected