FxNews – In our today’s silver technical analysis, we observe a bearish long wick candlestick pattern that emerged when the market reached the upper band of the bearish flag on the daily chart. Since then, the silver price has fluctuated between the 78.6% and 61.8% Fibonacci retracement levels. The Awesome Oscillator’s histogram turning red further supports the recent correction in the XAG/USD price.
For a deeper understanding of the silver technical analysis, we’ll examine the lower time frames. On the 4-hour chart, another bearish signal emerges: a bearish engulfing candlestick pattern. The Awesome Oscillator provides additional support for this bearish outlook by crossing below the signal line.
The $23.4 support level plays a pivotal role, as bears failed to stabilize the price below this mark in the previous trading session. Should this level be breached, the decline that began last Friday could initially target the $23 threshold, coinciding with the 50% Fibonacci retracement level.
Our bearish outlook in silver technical analysis hinges on the price remaining below $24.1. A break above this level would invalidate the current bearish scenario.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.