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Within a Weekly Bullish Channel, Silver (XAG/USD) Drops Below 22.00 USD

May 26, 2022

Talking Points:

  • XAG/USD accepts trades to extend the previous day’s decline from the two-week high and renews the daily low.
  • Within a one-week-old ascending channel, a three-day-old descending trend line limits any immediate upside.
  • Bears are challenged by the 200-day simple moving average (SMA) and the lack of a bearish relative strength index (RSI).

For the second day in a row, XAG/USD has lost ground, taking trades around 21.93 USD during today’s Asian trading session.

The precious metal is retreating from a three-day-old downward sloping resistance line as the RSI falls.

However, the XAG/USD’s immediate downside will be challenged by a one-week-old bullish channel of support, which is around 21.75 USD.

Even if the pair falls below 21.75 USD, the 200-day SMA level of 21.71 USD and an RSI around 50 can keep silver bulls optimistic.

In order for the bulls to retake control, an upside breach of the immediate resistance line at 22.05 USD is required.

Following that, the market will focus on the top line of the aforementioned channel, which is around 22.30 USD.

The 23.00 USD mark and the monthly high around 23.30 USD will be in focus if the XAG/USD bulls prevail past 22.30 USD.

XAG/USD Hourly Chart:

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