Silver Price Analysis: Eases below $28.00 inside three-week-old rising channel
- Silver keeps bounces off 100-bar SMA following a pullback from channel resistance.
- Receding MACD strength directs sellers towards 200-bar SMA, channel’s lower line.
- Five-week-old support line adds to the downside filters.
Silver wavers in a range above $27.50, currently around $27.65, while trying to defend the bulls amid the initial Asian session on Wednesday. The white metal snapped a two-day winning streak while easing from the highest levels last seen on February 02 during the previous day.
In doing so, the commodity prices stepped back from the upper line of an ascending trend channel formations established since February 04. However, the 100-bar SMA offered the latest bounce to the quote.
It should, however, be noted that the corrective pullback lacks momentum, as the MACD teases sellers, which in turn indicates further weakness by the bullion.
As a result, silver bears will wait for a clear downside break of 100-bar SMA, at $27.22 now, to revisit the 200-bar SMA level of $26.44. Though, the support line of the stated channel and over a month-old rising trend line, respectively around $26.30 and $25.90, will challenge the precious metal’s further downside.
Meanwhile, the stated channel pattern’s resistance line, at $28.17 now, will eye for the $28.40 and the $29.00 before directing the bulls towards the monthly top above $30.00.
Overall, silver is likely to witness pullback in its short-term upward trajectory.
Silver four-hour chart
Trend: Pullback expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
