- Silver prices (XAG/USD) are struggling to maintain the upward momentum that started last Monday and are currently facing back-to-back days of losses.
- A “tweezer” chart formation in XAG/USD suggests potential for further downside, with the current price at $23.48, down 0.92%.
- If sellers maintain control and hold the price below $24.00, a decline towards the 200-DMA is likely, with another potential decline towards the $23.00 mark.
silver The price is looking to extend its rally that began last Monday and has posted consecutive days of losses, due to risk-on momentum, despite an overall weakening of the US dollar (USD). In terms of price action, XAG/USD formed a “tweezers” top diagram a pattern that guarantees that further downward action is expected; therefore, XAG/USD is trading at $23.48, down 0.92%.
After forming a “tweezer top”, XAG/USD resumed its downtrend but was capped by the 200-day moving average (DMA) at $23.28 before returning above the daily low of 16 November $23.28. A daily close above the latter could open the door to a retest of $24.00.
On the other hand, if sellers intervened and held prices below the $24.00 level, chances of a pullback increased to the 200-DMA and subsequently to the $23.00 level. A further decline is expected below this level, which will reveal the lowest low of the last cycle at $21.88, the November 13 low.