XAG / USD on the way to $ 22.00 on a bearish triangle break
- Silver remains under pressure towards the yearly lows despite the recent corrective pullback.
- Confirmation of a bearish pattern is combined with a stable RSI to favor sellers.
- 13-day-old resistance line, 100-SMA complements the upward filter.
Silver (XAG / USD) licked its wounds around USD 22.60 during Friday’s Asian session, up 0.28%.
Even so, the bright metal is sustaining the downward break from the previous day of a week old ascending triangular collapse.
In the absence of oversold RSI conditions and continued trading below the short-term resistance line as well as the 100-SMA, silver prices are likely to move south.
Hence, the monthly low, including the 2021 low at $ 22.00, has recently caught the market‘s attention.
Any further downside, however, will be challenged by the September 2020 lows of $ 21.65, a break of which will pull price to the July 2016 high near $ 21.15.
Meanwhile, the corrective pullback could target the support reversal resistance line, which at press time is $ 22.75, before heading towards the double top at $ 23.15.
It is worth noting that the upward trend in commodities above $ 23.15 is challenged by a descending resistance line on September 7th and 100-SMA, around $ 23.25 and $ 23.60 in that order.
Silver: four-hour chart
Trend: further weakness expected