Silver (XAGUSD) Price: Head and Shoulder Chart Pattern, Bearish Trend Envisaged

Bears’ pressure may increase in Silver market

SILVER Weekly Price Analysis – 25 November

An increase in the bulls’ momentum may lead to the breaking up of the $21 resistance level which may increase Silver to $22 and $23 resistance levels. The breakdown of the $20 support level may reduce the price to $19 and $17 levels.

XAGUSD Market

Key Levels:

Resistance levels: $21, $22, $23

Support levels: $20, $19, $17

XAGUSD Long-term trend: Bearish

XAGUSD is bearish on the long-term outlook. The white metal was on a bullish movement for the last two weeks. The bullish momentum increased and push the metal to the resistance level of $22. A daily bearish engulfing candle emerged. The support level of $21 was a broken downside and the $20 level was tested. The price bounced up and the price action is in the process of producing a Head and Shoulder chart pattern.  This price pulled back and test the resistance level of $21.

Silver is trading slightly above the 9 periods EMA and 21 periods EMA at close contact. The fast-moving Average (9-periods EMA) is above the slow-moving average (21-periods EMA). An increase in the bulls’ momentum may lead to the breaking up of the $21 resistance level which may increase to $22 and $23 resistance levels. The breakdown of $20 support level may reduce the price to $19 and $17 levels.

XAGUSD Medium-term Trend: Bearish

XAGUSD is on the bearish movement on the 4-hour chart. The price action has formed a bearish chart pattern called the Head and Shoulder pattern. It is an indication that bears will dominate the market soon. The Price may decrease below the $20 price level when the sellers gain more pressure.

Silver price is trading below the 9-periods EMA and 21-periods EMA. The Relative Strength Index period 14 is at 46 levels with the signal line displaying a bearish direction.

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