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| Silver Price Retreats from Multi-Day Highs, Bearish Chart Formation Suggests Further Declines Ahead for XAG/USD |
Silver prices are showing a bearish chart formation as XAG/USD retreats from a seven-week high, currently trading at $23.00. The one-week-old rising wedge chart formation, combined with sluggish MACD signals and overbought RSI conditions, is luring sellers due to the pattern's positioning at the multi-day top.
The XAG/USD may likely decline towards the 61.8% Fibonacci retracement level of the metal's fall during the February-March period, around $22.80. The quote's further declines depend on its ability to break the stated wedge's lower line, currently around $22.60. If the bearish chart formation continues, the 50-SMA and 200-SMA can entertain the XAG/USD sellers around $22.30 and $21.55, respectively, during the theoretical south-run towards the early March swing high surrounding $21.30.
On the other hand, recovery moves need to cross the $23.20 hurdle to defy the bearish chart formation. However, multiple hurdles marked around $23.60 can prod the Silver buyers before directing them to the previous monthly high surrounding $24.65. Overall, while the Silver price is expected to witness a pullback, the road towards the south appears limited.
