Silver Price Analysis: XAG/USD bears flex muscles within fortnight-old triangle, $23.50 is the key

• Silver price remains pressured for the second consecutive day within bearish triangle.
• Failure to cross 200-EMA, bearish MACD signals favor XAG/USD sellers.
• Bulls need validation from $24.25 to retake control.

Silver Price (XAG/USD) stays depressed around the intraday low of $23.50 heading into Monday’s European session. In doing so, the bright metal prods the bottom line of a two-week-old ascending triangle while extending the previous day’s pullback from the 200-bar Exponential Moving Average (EMA).

Apart from the failure to cross the key EMA and the existence of the bearish chart pattern, the downbeat MACD signals also lure the XAG/USD sellers.

However, a clear break of $23.50 becomes necessary to confirm the bearish chart formation suggesting a theoretical fall toward $22.20.

That said, the previous monthly low of around $22.70 may act as an extra filter towards the theoretical target whereas the 61.8% Fibonacci Expansion (FE) of its May 10 to June 02 moves, near $22.00, can prod the Silver bears afterward.

On the flip side, a recovery moves not only needs validation from the 200-EMA hurdle of around $23.95 but also needs to defy the triangle formation by crossing the stated pattern’s top line, close to $24.00 by the press time.

Even so, a one-month-old horizontal resistance area around $24.25 can challenge the XAG/USD bulls before giving them control.

Silver Price: Four-hour chart

Trend: Further downside expected