Silver Price Analysis: Challenges critical support after rejection above $28
|- Silver drops from multi-day highs as the US dollar rebounds with yields.
- XAG/USD fails to find acceptance above the $28 mark once again.
- Defending $27.60 support is critical for the silver bulls.
Silver (XAG/USD) is trading in the red below $28, looking to extend Tuesday’s sharp pullback from ten-day highs of $27.56.
The US dollar rose in tandem with the Treasury yields on strong US ISM Manufacturing PMI while inflation concerns and stimulus hopes fail to offer any support to silver price.
Silver’s daily chart shows that the price wavers in a two-week-old symmetrical triangle, now testing the lower boundary at $27.60. That level also coincides with the upward-sloping 21-daily moving average (DMA).
The 14-day Relative Strength Index (RSI) has turned south but remains above the midline, suggesting that the downside is likely to be limited.
A daily closing below the abovementioned support could yield a triangle breakdown, opening floors towards the $27 threshold.
Further south, $26.40 could emerge as powerful support, comprising of the 50 and 100-DMAs.
Silver Price Chart: Daily
Alternatively, any bounce from the triangle support could revive the bullish interest, exposing the $28.50 supply zone.
At that point, Tuesday’s high and pattern resistance intersect.
Silver Additional levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.