- Silver refreshes intraday top following a bounce off monthly low.
- Clings to 61.8% Fibonacci retracement, a sustained trading below 200-DMA keeps sellers hopeful.
Silver (XAG/USD) prints corrective pullback near the monthly bottom, up 0.12% intraday around $25.70, amid Monday’s Asian session. In doing so, the white metal seesaws around 61.8% Fibonacci retracement level of March-May upside.
Although the upward sloping Momentum line suggests that the bearish move is strong, a daily closing below the stated key Fibonacci retracement level of $25.70 becomes necessary to witness the fresh selling pressure.
Following that, June’s low near $25.50, also the lowest since mid-April, will be the key as a downside break of which won’t hesitate to challenge the April 13 low near $24.65.
Meanwhile, further recovery of silver prices depends upon the breakout of the 200-DMA level of $25.86, which in turn could push the quote to a 50% Fibonacci retracement level of $26.25.
However, the commodity’s advances past $26.25 will be tested by a downward sloping trend line from July 06, near $26.35, as well as the monthly high near $26.75.
To sum, silver remains on the bear’s radar despite the latest bounce.
Silver: Daily chart
Trend: Bearish
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