Silver Price Analysis: Double top around $24.50, exacerbated silver’s fall below $24.00

• Silver Prices plunged even though the US Dollar was on the defensive, and US T-bond yields dropped.
• Silver Price Analysis: The confluence of a double top and an evening star opens the door for further downside.

Silver spot prices, also known as XAG/USD, snapped three days of gains and plunged more than 1.50% on Tuesday, although the US Dollar (USD) remained offered, and US Treasury bond yields dropped. Hence, the XAG/USD is trading at $23.91 a troy ounce after reaching a daily high of $23.92.

Silver Price Analysis: XAG/USD Technical Outlook

After testing the YTD high of $24.54, the XAG/USD formed a double top, which could open the door for further losses. Also, an evening star emerged a three-candlestick chart pattern that could send Silver prices tumbling. With oscillators like the Relative Strength Index (RSI) registering lower peaks and aiming down, alongside the Rate of Change flashing that buyer’s momentum is fading, the XAG/USD downward bias remains intact.

Therefore, if XAG/USD slides below $23.83, silver would be poised to test the 20-day Exponential Moving Average (EMA) at $23.70. Once cleared, XAG/USD will prove January 11 daily low fo $23.22, ahead of $23.00.

Silver (XAG/USD) Key Technical Levels