Silver Price Analysis: XAG/USD pulls back towards $23.00 but bulls remain hopeful

• Silver retreats five-week-old horizontal resistance, pressured around intraday low of late.
• 200-SMA, short-term support line challenges further downside even as RSI pullback favor sellers.
• Upside break of $23.50 will confirm a bullish cup-and-handle chart pattern.

Silver begins 2022 with mild losses of around 0.50% intraday while stepping back from the weekly top towards $23.00 during early Monday.

In doing so, the bright metal eases from a five-week-old horizontal resistance area, surrounding $23.40-45.

Given the RSI line’s retreat from the nearly overbought region, the latest declines in silver prices are likely determined to aim for the 200-SMA level surrounding the $23.00 threshold.

Following that, an upward sloping support line from December 15, around $22.80, will be in focus.

Meanwhile, an upside clearance of the $23.45 will need validation from multiple tops marked during late November surrounding $23.75.

Following that, a confirmation of the bullish cup-and-handle chart pattern will play its role to direct XAG/USD buyers toward the mid-$25.00 zone.

To sum up, silver prices are likely to witness further declines but the bears have miles to go.

Silver: Four-hour chart

Trend: Pullback expected