XAG / USD drops to $ 22.50 within the weekly rising wedge
- Silver consolidates recent gains during the three day uptrend and stays within the bearish pattern.
- RSI pullback from overbought territory signals further weakness, 100-HMA provides immediate support.
- 200-HMA is a tough nut to crack for bulls.
Silver (XAG / USD) prices cover early daily gains around $ 22.50 ahead of Tuesday’s European session.
The light metal remains within an immediately rising bearish chart pattern.
Given the recent RSI retreat from the overbought territory, the recent weakness in the commodity is likely to test the 100 HMA support at $ 22.45. However, any further weakness will be challenged by the support line of the indicated wedge, which is at USD 22.40 at the latest.
Should the price drop below $ 22.40, it cannot be ruled out that it will hit the monthly low of $ 21.95.
It’s worth noting that the bottom marked during the September and December months of 2021 at around $ 21.40 becomes a key support to watch later.
Alternatively, a clear upside break in the immediate resistance level at $ 22.60 which is part of the wedge will escalate the rebound towards the 200 HMA level at $ 22.73.
After that, a one week old descending trendline around $ 23.00 will grab the market‘s attention.
Silver: hourly chart
Trend: further weakness expected