Silver Price Analysis: Bulls look for entries beyond 50% Fibonacci retracement
|- Silver prices fade upside momentum beyond $24.00, RSI tilts to the south.
- Ascending triangle on the hourly chart restricts the short-term upside.
- Bears will regain controls on the break of $23.90.
Silver drops to $24.28, down 0.30% intraday, during the pre-European session on Tuesday. In doing so, the white metal registers its failures to break one week high flashed the previous day amid dwindling RSI conditions. It should also be noted that the 50% Fibonacci retracement of the bullion’s September 18-21 downside also accompanies the latest resistance around $24.40/45.
As a result, sellers are gradually firming up their grips to retake controls while targeting the $24.00 threshold. However, a clear downside below the triangle’s support line, currently around $23.90, becomes necessary for sellers’ safety.
Following that, silver quotes may aim for the monthly low near $23.10 ahead of targeting the previous month’s low near $21.65.
Alternatively, a sustained break above $24.45 will propel the silver prices towards September 22 high near $24.90/95.
Though, any more upside will depend upon how the precious cross the $25.00 round-figure, which in turn could propel the run-up in the direction to 78.6% Fibonacci retracement level near $26.00.
Silver hourly chart
Trend: Pullback expected
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