Silver Price Analysis: Drops to 200-HMA inside immediate falling channel
|- Silver prices stretch the early-week pullback from $18.39.
- 61.8% Fibonacci retracement, the channel support might question further downside.
- A descending trend line from September 2019 becomes the key upside barrier.
While printing three-day losing streak from the highest levels since late-February, probed on Monday, Silver prices drop to $17.60 during early Thursday.
In doing so, the white metal tests the 200-HMA support level of $17.57 while staying inside a short-term descending trend channel formation.
Should the bears refrain from respecting $17.57 support, 61.8% Fibonacci retracement of its May 22 to June 01 upside, near $17.36, followed by the said channel’s lower line around $17.30, could restrict further downside.
Alternatively, the bullish MACD signals and strong support increase the odds of the bullion’s break of the channel formation by crossing $17.80 immediate resistance.
Should that happen, $18.10 and the recent high near $18.40 could lure the buyers ahead of diverting them to a multi-week falling trend line near $18.55.
Silver hourly chart
Trend: Pullback expected
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.