XAU / USD looks to $ 23.00 as the RSI divergence faces the bearish flag

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  • Silver takes the bids within a bearish chart pattern, RSI, MACD buyers prefer.
  • The convergence of 100-EMA, the three-week-old resistance level, is challenging the bulls.
  • Bears are looking for a clear fraction of $ 22.40 for new entries.

Silver (XAG / USD) extends the previous day’s recovery moves by over 1.0% daily as it bids at $ 22.75 early Wednesday.

With this, the bright metal will stay within a short-term bearish flag pattern while respecting the RSI divergence and the bullish MACD signals.

However, the further uptrend needs to stay above $ 22.85 before targeting the recent swing top at $ 23.13.

The most important upward filter is also the confluence of 100-EMA and a descending trendline from September 7th at around USD 23.45.

Meanwhile, a break of $ 22.40 down will confirm the bearish chart pattern, theoretically pointing south towards $ 20.40. However, the annual low of $ 22.00 and the September 2020 low of $ 21.65 appear to be tough challenges for silver sellers.

The US $ 20.00 threshold and November 2020 low near US $ 21.90 also act as a downward filter.

Overall, silver remains under pressure towards the yearly lows unless it breaks above $ 22.40.

Silver: four-hour chart

Trend: withdrawal expected


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