- June 7, 2021
- Posted by: Analysis Team
- Category: Forex News
- Silver retreats below 100-SMA, weekly resistance line convergence.
- 200-SMA, five-week-old support line restrict short-term downside.
- $26.70 adds to the downside filters, bulls need $28.25-30 breakout for confirmation.
Silver fades the previous recovery moves while easing to $27.75 amid Monday’s sluggish Asian session. In doing so, the white metal steps back from a confluence of 100-SMA and a short-term resistance line.
Although the recent pullback is likely directing the commodity prices toward $27.50, a joint of 200-SMA and an ascending trend line from late April, near $27.20, will be a tough nut to crack for the sellers.
Also challenging the silver bears is a monthly horizontal area surrounding $27.00–26.90. However, a clear break of the same won’t hesitate to recall the $25.70 back to the chart.
Meanwhile, a clear break above $27.75, will aim for the $28.00 threshold whereas May’s top near $28.75 could probe the buyers afterward.
In a case where silver bulls keep reins beyond $28.75, the $30.00 psychological magnet will be the key to watch.
SILVER FOUR-HOUR CHART