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
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
