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.

Dhwani Mehta FXStreet

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

XAG/USD

Overview
Today last price	27.68
Today Daily Change	-0.19
Today Daily Change %	-0.68
Today daily open	27.9

Trends
Daily SMA20	27.61
Daily SMA50	26.37
Daily SMA100	26.37
Daily SMA200	25.71

Levels
Previous Daily High	28.56
Previous Daily Low	27.83
Previous Weekly High	28.23
Previous Weekly Low	27.4
Previous Monthly High	28.75
Previous Monthly Low	25.81
Daily Fibonacci 38.2%	28.11
Daily Fibonacci 61.8%	28.28
Daily Pivot Point S1	27.63
Daily Pivot Point S2	27.36
Daily Pivot Point S3	26.9
Daily Pivot Point R1	28.36
Daily Pivot Point R2	28.82
Daily Pivot Point R3	29.09

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.

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